Company registration number 12964722 (England and Wales)
Drac Distribution Limited
financial statements
For the year ended 31 March 2024
Drac Distribution Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
Drac Distribution Limited
Statement of financial position
As at 31 March 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
-
0
68,570
Investments
4
76,494
-
0
76,494
68,570
Current assets
Debtors
5
747,764
816,434
Cash at bank and in hand
30,903
210,852
778,667
1,027,286
Creditors: amounts falling due within one year
6
(1,290,260)
(968,421)
Net current (liabilities)/assets
(511,593)
58,865
Total assets less current liabilities
(435,099)
127,435
Provisions for liabilities
(16,090)
(13,030)
Net (liabilities)/assets
(451,189)
114,405
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
(451,289)
114,305
Total equity
(451,189)
114,405

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 18 November 2025 and are signed on its behalf by:
Mr T A Hayes
Director
Company registration number 12964722 (England and Wales)
Drac Distribution Limited
Notes to the financial statements
For the year ended 31 March 2024
- 2 -
1
Accounting policies
Company information

Drac Distribution Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3, Opal Way, Stone Business Park, Stone, Staffordshire, ST15 0SS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The Company has sold its trade and assets on 31 March 2024 and so is not considered to be a going concern. The financial statements have been prepared on a basis other than that of a going concern which includes, where appropriate, making provision for any year-end trade debtor balances that are not expected to be received after the balance sheet date.true

The financial statements do not include any provision for the future costs of the closing of the business except to the extent that such costs were committed at the balance sheet date.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recover able.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
20% Straight Line
Plant and equipment
20% Straight Line
Computers
33% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Drac Distribution Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 3 -
1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Classification of 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 deducting all of its liabilities.

Drac Distribution Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Drac Distribution Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
- 5 -
1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.14

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
15
13
3
Tangible fixed assets
Leasehold improvements
Plant and equipment
Computers
Total
£
£
£
£
Cost
At 1 April 2023
26,974
67,451
2,201
96,626
Additions
3,200
10,733
2,184
16,117
Disposals
(30,174)
(78,184)
(4,385)
(112,743)
At 31 March 2024
-
0
-
0
-
0
-
0
Depreciation and impairment
At 1 April 2023
7,587
20,084
385
28,056
Depreciation charged in the year
6,035
15,637
1,447
23,119
Eliminated in respect of disposals
(13,622)
(35,721)
(1,832)
(51,175)
At 31 March 2024
-
0
-
0
-
0
-
0
Carrying amount
At 31 March 2024
-
0
-
0
-
0
-
0
At 31 March 2023
19,387
47,367
1,816
68,570
Drac Distribution Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 6 -
4
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
76,494
-
0
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
-
Additions
76,494
At 31 March 2024
76,494
Carrying amount
At 31 March 2024
76,494
At 31 March 2023
-
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
570,262
724,657
Amounts owed by group undertakings
26,902
58,307
Other debtors
150,600
33,470
747,764
816,434
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
313,657
321,281
Amounts owed to group undertakings
553,703
189,905
Taxation and social security
16,854
12,389
Other creditors
406,046
444,846
1,290,260
968,421

Included within other creditors are invoice discounting facilities of £347,182 (2023 - £322,969), which are secured by fixed and floating charges covering all the property or undertaking of the company.

Drac Distribution Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
- 7 -
7
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

Opinion

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its loss for the year then ended;

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

- have been prepared in accordance with the requirements of the Companies Act 2006.

Emphasis of matter

We draw attention to Note 1.2 to the financial statements, ‘Going concern’, which explains that the company trade and assets were sold on 31 March 2024 and therefore it is not considered appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern as described in Note 1.2. Our opinion is not modified in respect of this matter.

Senior Statutory Auditor:
Stacey Parr FCCA
Statutory Auditor:
DJH Audit Limited
Date of audit report:
19 November 2025
8
Events after the reporting date

On 31 March 2024, Drac Distribution Limited sold its trade and assets to Drac Logistics Limited, a group company, at a price of £59,326.

The sale is expected to make Drac Global Group operations more streamlined, in order to increase profitability across the Group.

The sale of the trade and assets within the financial year means that post year-end, the trading activity of Drac Distribution Limited will be significantly less than in the current year, and that the company is no longer considered a going concern.

Appropriate disclosure about the status of the company as a going concern has also been made in Note 1.2.

9
Parent company

The parent company is Drac Global Limited which owns 100% of the ordinary share capital. Drac Global Limited is incorporated in England and the registered office is Unit 3 Opal Way, Stone Business Park, Stone, Staffordshire, United Kingdom, ST15 0SS.

T he ultimate controlling party is T A Hayes, by virtue of his controlling interest in the parent company.

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