FOR THE YEAR ENDED 31 DECEMBER 2024
DYNISMA LTD.
COMPANY INFORMATION
DYNISMA LTD.
CONTENTS
DYNISMA LTD.
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for the year ended 31 December 2024.
Year ending 31st December 2024 is the first year that the company will file full statutory accounts, with an abridged set of accounts being filed for Year ending 2023.
Year ending 31st December 2024 is the first year that the company will file full statutory accounts, with an abridged set of accounts being filed for Year ending 2023.
The main activity of the company is the design, manufacture and installation of driving simulators within the motorsport and automotive sectors.
The company which was founded in 2017, has experienced a significant growth phase building on an initial development period, followed by contract awards and delivery to a several high profile automotive and motorsport customers, and is now in an expansion phase due to its strong reputation and proven track record in the market, reflected in both historic trading and future pipeline. Whilst maintaining a focus on research and development both in technological advancements of the existing product range as well as in additions to its product range.
Dynisma product range includes the DMG1, DMGX and the more recent DMG360XY (launched to customers in 2023), and the Revenue profile reflects this mix.
Revenue increased in the year ended 31st December 2023 from £12.1m, to £19.7m in the year ended 31st December 2024, an increase of 63%. Much of this growth has been delivered through the 360XY product range which was launched in 2023.
Whilst Cost of sales has increased in line with activity, we have also benefited from efficiencies in the production process, and enhanced supplier trading terms delivering a Gross Margin of 48.1% for FY2024, against 44.9% in FY2023.
EBITDA for FY24 is £4.6m (23.2% of Revenue), against a prior year position of £2.2m (18.3% of Revenue). representing a growth of 107%. EBITDA is derived from Profit before interest and tax of £3.3m adjusted for depreciation of £291k and amortisation of £947k.
The company finished the period in good financial health with net assets of £6.7m, and a very strong pipeline which brings great confidence to continued growth and improving financial performance going forward.
The Fixed Asset base increased from £4.6m to £8.3m, an increase of £3.7m, of which £2.3m relates to Intangibles in line with an continued focus on Development activities of current and new product lines.
Both Debtor and Creditor balances have increased in conjunction with increased volumes, whilst ensuring strong credit control and supplier terms.
The company secured additional funding in the year through Asset Finance of £1.2m over a 12 month term, and a Bank loan secured against our Intellectual Property of £1.5m over a 12 month term. A short term shareholder loan was taken in October 2024 which was repaid in full in November 2024.
FUTURE TRADING
Dynisma has a very strong pipeline and projects future significant growth in the forecast across all product ranges, building on investment in R&D as well as capital assets to increase the industrial footprint to expand the production facilities. Significant growth is expected in the forecast years of which a large proportion is contracted or at final negotiations stage with customers.
The company which was founded in 2017, has experienced a significant growth phase building on an initial development period, followed by contract awards and delivery to a several high profile automotive and motorsport customers, and is now in an expansion phase due to its strong reputation and proven track record in the market, reflected in both historic trading and future pipeline. Whilst maintaining a focus on research and development both in technological advancements of the existing product range as well as in additions to its product range.
Dynisma product range includes the DMG1, DMGX and the more recent DMG360XY (launched to customers in 2023), and the Revenue profile reflects this mix.
Revenue increased in the year ended 31st December 2023 from £12.1m, to £19.7m in the year ended 31st December 2024, an increase of 63%. Much of this growth has been delivered through the 360XY product range which was launched in 2023.
Whilst Cost of sales has increased in line with activity, we have also benefited from efficiencies in the production process, and enhanced supplier trading terms delivering a Gross Margin of 48.1% for FY2024, against 44.9% in FY2023.
EBITDA for FY24 is £4.6m (23.2% of Revenue), against a prior year position of £2.2m (18.3% of Revenue). representing a growth of 107%. EBITDA is derived from Profit before interest and tax of £3.3m adjusted for depreciation of £291k and amortisation of £947k.
The company finished the period in good financial health with net assets of £6.7m, and a very strong pipeline which brings great confidence to continued growth and improving financial performance going forward.
The Fixed Asset base increased from £4.6m to £8.3m, an increase of £3.7m, of which £2.3m relates to Intangibles in line with an continued focus on Development activities of current and new product lines.
Both Debtor and Creditor balances have increased in conjunction with increased volumes, whilst ensuring strong credit control and supplier terms.
The company secured additional funding in the year through Asset Finance of £1.2m over a 12 month term, and a Bank loan secured against our Intellectual Property of £1.5m over a 12 month term. A short term shareholder loan was taken in October 2024 which was repaid in full in November 2024.
FUTURE TRADING
Dynisma has a very strong pipeline and projects future significant growth in the forecast across all product ranges, building on investment in R&D as well as capital assets to increase the industrial footprint to expand the production facilities. Significant growth is expected in the forecast years of which a large proportion is contracted or at final negotiations stage with customers.
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DYNISMA LTD.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Market risk
The company has good visibility for projects for the next 2 years, continuing to develop good long-term relationships with OEMs and Motorsport teams, to consolidate our position as the leading driving simulator supplier for this market.
Dynisma is looking to further spread risk by entering new markets, and with the introduction of a new product into its range in 2025 which will attract a new customer base, of which we have already taken orders. This diversification then covers multiple sectors, product types and price points.
Business risk
The company can from time to time be impacted by customer delays on live projects, most notably due to building readiness date slippage. To mitigate this risk the company has cashflow protection clauses embedded into customer contracts so as not to penalise the company for delays in this regard, as well as recently amending production processes as we scale to a build to stock methodology in order that the throughput of the production bay is not impacted by these delays.
Price Risk, Credit Risk, Liquidity Risks and Cashflow Risk
The company’s principal instruments are bank balances, trade debtors, trade creditors. The main purpose of these instruments is to finance the business operations. Due to the nature of the products we sell, the trade debtors’ profile of the business fluctuates linked to payment milestones set out in the contract. It is important that the debtor profile of live Contracts is optimised to ensure the company remains cash flow positive in its working capital to fund investment in other areas to deliver the growth trajectory. Cashflow modelling is run prior to sign off any new contracts to ensure they are agreed at a level that supports this.
The company has access to a General Export Facility through UK Export to support where needed.
Trade debtors are monitored continually and there is no concern in this area, with most customers being on 30-day terms, and no issues with overdue debt.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due, good payment terms with suppliers and where possible ensuring supplier payment milestones are in line with customer payment terms on specific projects.
The company has good visibility for projects for the next 2 years, continuing to develop good long-term relationships with OEMs and Motorsport teams, to consolidate our position as the leading driving simulator supplier for this market.
Dynisma is looking to further spread risk by entering new markets, and with the introduction of a new product into its range in 2025 which will attract a new customer base, of which we have already taken orders. This diversification then covers multiple sectors, product types and price points.
Business risk
The company can from time to time be impacted by customer delays on live projects, most notably due to building readiness date slippage. To mitigate this risk the company has cashflow protection clauses embedded into customer contracts so as not to penalise the company for delays in this regard, as well as recently amending production processes as we scale to a build to stock methodology in order that the throughput of the production bay is not impacted by these delays.
Price Risk, Credit Risk, Liquidity Risks and Cashflow Risk
The company’s principal instruments are bank balances, trade debtors, trade creditors. The main purpose of these instruments is to finance the business operations. Due to the nature of the products we sell, the trade debtors’ profile of the business fluctuates linked to payment milestones set out in the contract. It is important that the debtor profile of live Contracts is optimised to ensure the company remains cash flow positive in its working capital to fund investment in other areas to deliver the growth trajectory. Cashflow modelling is run prior to sign off any new contracts to ensure they are agreed at a level that supports this.
The company has access to a General Export Facility through UK Export to support where needed.
Trade debtors are monitored continually and there is no concern in this area, with most customers being on 30-day terms, and no issues with overdue debt.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due, good payment terms with suppliers and where possible ensuring supplier payment milestones are in line with customer payment terms on specific projects.
The company has invested heavily in 2024 in additional workforce in line with capacity as the company grows. Additional workforce has been recruited across all areas of the business bringing expertise and experience to the company to continue the focus on development as well as refining production processes. The company is a key advocate for Early Years involvement and proudly provide Graduate, Internship and Summer placements as a key part of the headcount.
The matters of most strategic importance are in maintaining our market reputation as the leading provider of motion simulators and the continued development of our products, people and facilities.
High quality products with cutting edge technology paired with seamless and professional installation and training is what we are known for.
The company will increase its industrial footprint in 2025 and 2026 in line with new product range and growth.
FUTURE DEVELOPMENT
The company has a clear strategy for the future in regard to growth and our technological roadmap.
In 2025 there will be a funding round to bring new capital into the business to support the growth of the business.
High quality products with cutting edge technology paired with seamless and professional installation and training is what we are known for.
The company will increase its industrial footprint in 2025 and 2026 in line with new product range and growth.
FUTURE DEVELOPMENT
The company has a clear strategy for the future in regard to growth and our technological roadmap.
In 2025 there will be a funding round to bring new capital into the business to support the growth of the business.
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DYNISMA LTD.
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board on 26 September 2025 and signed on its behalf.
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DYNISMA 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 profit for the year, after taxation, amounted to £2,822,547 (2023:£1,610,963).
No dividends were paid during the year (2023: £nil).
The directors who served during the year were:
The company is currently in the process of an equity funding round to introduce additional capital into the business to achieve the growth trajectory reflected in the long term forecast.
The company’s activities expose it to some financial risks including credit risks, cashflow risk and liquidity risk.
There is a limited forex risk regarding the purchase of goods from foreign suppliers and is actively managed through aligning Trade Creditor and Trade Debtor balances. To reduce the foreign exchange risk the company has bank accounts in several currencies and holds cash amounts on each of these accounts.
The company monitors credit risk through adherence to company policy regarding payment terms for both Debtors and Creditors.
The directors review the financial position in relation to financial risks on a timely basis.
There is a limited forex risk regarding the purchase of goods from foreign suppliers and is actively managed through aligning Trade Creditor and Trade Debtor balances. To reduce the foreign exchange risk the company has bank accounts in several currencies and holds cash amounts on each of these accounts.
The company monitors credit risk through adherence to company policy regarding payment terms for both Debtors and Creditors.
The directors review the financial position in relation to financial risks on a timely basis.
The company continues to undertake research and development during the year in line with the business plan, and expects this to continue going forward. The company has a strong pipeline of enhancements and new products that will support sales growth in future years.
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DYNISMA 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 auditors, Bishop Fleming Audit Limited, 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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DYNISMA LTD.
DIRECTORS' RESPONSIBILITIES STATEMENT
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.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
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.
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DYNISMA LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYNISMA LTD.
We have audited the financial statements of Dynisma Ltd. (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Statement of financial position, 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.
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 Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our 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.
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DYNISMA LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYNISMA LTD. (CONTINUED)
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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DYNISMA LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYNISMA 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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
∙the nature of the industry and sector, control environment, and business performance;
∙the results of enquiries with management and the directors in relation to their own identification and assessment of the risks of irregularities within the entity; and
∙the documentation of key processes and controls and performed walkthroughs of transactions to confirm that the systems are operating effectively, in line with the documentation.
As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition.
In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, FRS 102 and UK tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or avoid a material penalty. These included data protection legislation, health and safety regulations, and employment law.
Our procedures to respond to risks identifed included the following:
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙Enquiring of management in relation to actual and potential claims and litigation;
∙Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
∙Reviewing board meeting minutes;
∙Performing detailed transactional testing in relation to the recognition of revenue with a particular focus around the year-end cut off;
∙Performing walkthroughs to understand management's control environment; and
∙In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.
We also communicated identified laws and regulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit.
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DYNISMA LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DYNISMA LTD. (CONTINUED)
As a result of inherent limitations of an audit, there is a risk that not all irregularities, including a material misstatement in the financial statements or non-compliance with regulation, will be detected by us. This risk increases the further removed compliance with a law and regulation is from the events and transactions reflected in the financial statements, given we will be less likely to be aware of it, or should the irregularity occur as a result of fraud rather than a one off error, as this may involve 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 Auditors
10 Temple Back
BS1 6FL
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DYNISMA LTD.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYNISMA LTD.
REGISTERED NUMBER:10923412
STATEMENT OF FINANCIAL POSITION
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 16 to 34 form part of these financial statements.
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DYNISMA LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYNISMA LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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DYNISMA LTD.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
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DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Dynisma Ltd. (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is C/O Dynisma Manufacturing Centre, Redwood Farm, Barrow Gurney, BS48 3RE, United Kingdom.
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:
The directors have assessed the Statement of Financial Position and likely future cash flows at the date of approving these financial statements. The directors have a positive expectation that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 18 months from the date of signing these financial statements. The Company is expanding rapidly and has prepared forecasts which reflect both contracted revenue and uncontracted revenue, in varying stages of negotiation, and the anticipated margins and related cash flows that should be generated. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Functional and presentation currency
Transactions and balances
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DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Profit on long-term contracts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a consistent basis to reflect the proportion of the work carried out at the year end, by recognising the profit element on a basis of percentage of actual staff costs incurred to date compared to the latest forecasts.
Revenue is calculated based on the stage of completion of each contract.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives of 7 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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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DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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DYNISMA 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.
The estimated useful lives range as follows:
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.
Assets under construction are not depreciated until they are available for use.
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DYNISMA 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.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
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DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.ACCOUNTING POLICIES (CONTINUED)
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The critical accounting judgments adopted by management applicable to this company are:
Long term contract accounting
The recognition of profit on long-term contracts is dependent to management's ability to assess the forecast costs to complete. Regular review enables management to identify changes to contract outcomes as soon as possible.
Estimation of useful lives of tangible and intangible assets
The Company determines the estimated useful lives and related depreciation and amortisation charges of its tangible and intangible assets. The estimates are based on historical experience and directors best estimate as to the period over which the Company will receive benefits from the assets. Useful lives are reviewed annually by directors and prospective adjustments are made if necessary.
Share based payments
Fair value of share options is determined by using the Black Scholes option pricing model which requires management to make a number of assumptions. These assumptions involve a number of variables and uncertainties and reflect management's best estimates at the date of grant.
Deferred tax asset
Recognition of a deferred tax asset is based on management's estimation of future profits.
Valuation of investments
The fair value of equity recognised on unlisted investments is based on a combination of counterparty management information and directors' judgment.
Other intangible assets - marketing
The value attributed to each element of marketing based intangible assets is based on the director's best estimation of their relative fair value.
Page 23
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 24
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 25
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
There were no factors that may affect future tax charges.
Page 26
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 27
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 28
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
12.TANGIBLE FIXED ASSETS (CONTINUED)
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Page 29
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The bank loans are secured by way of a fixed and floating charge over the assets of the company.
Page 30
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The bank loans are secured by way of a fixed and floating charge over the assets of the company.
Page 31
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Page 32
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
During the year, the company issued 72 ordinary shares with an aggregate nominal value of £0.72. Consideration of £16,278 was received.
Page 33
DYNISMA LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company operates a defined contribution scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.
At the year end, there were unpaid contributions due to the fund of £50,102 (2023: £29,087).
At the year end, there were unpaid contributions due to the fund of £50,102 (2023: £29,087).
Page 34