Registration number:
Dreambase Limited
for the Year Ended 31 March 2025
Dreambase Limited
Contents
|
Company Information |
|
|
Strategic Report |
|
|
Directors' Report |
|
|
Statement of Directors' Responsibilities |
|
|
Independent Auditor's Report |
|
|
Consolidated Profit and Loss Account |
|
|
Consolidated Balance Sheet |
|
|
Balance Sheet |
|
|
Consolidated Statement of Changes in Equity |
|
|
Company Statement of Changes in Equity |
|
|
Consolidated Statement of Cash Flows |
|
|
Notes to the Financial Statements |
Dreambase Limited
Company Information
|
Directors |
Mr R Ahmed Mr M Ahmed Mr A Ahmed |
|
Registered office |
|
|
Auditors |
|
Dreambase Limited
Strategic Report for the Year Ended 31 March 2025
The directors present their strategic report for the year ended 31 March 2025.
Principal activity
The principal activity of the group is the manufacture of divans, mattresses, sofabeds, headboards, and the importation of associated products and furniture.
Fair review of the business
The group has had a difficult trading year with a reduction in turnover of 16.5% from £10.16m to £8.48m, with customer confidence a key factor. An operating loss of £1,239,722 for the group is presented in the profit and loss account.
The directors believe that the group will be able to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. This assessment has been made after taking into account a number of factors including the following:
The directors have introduced £370k into Sweet Dreams (Nelson) Limited to support its cash flow, this to be repaid only when trading conditions have improved substantially.
The trustees of the Riaz Ahmed Pension Scheme, which owns the properties used by the group, has agreed to waive rents again for the next financial year. The group are looking for alternative users of some of its space to reduce additional costs related to rates, insurance, and utilities.
The group has also consolidated its operations to one site, which has had no impact on production but has led to additional savings in insurance and utilities.
From a business perspective, a new model range has been developed alongside overall rebranding, and the activation of a significant number of dormant business to business accounts where discounts for floor placements have been set up. This has shown to be positive in encouraging new orders.
Following the year end, a review of staffing was conducted, with a reduction in staff numbers occuring through a redundancy programme. Whilst this resulted in a substantial cash outflow during the redundancy period, there has been a cost saving in the month that followed from the lower wage costs and the National Insurance and pension contributions that come with it.
Production and office hours have also reduced, with production only 3-4 days a week depending on orders and the office only working 4 days a week. This has delivered a saving in operating costs and overheads through more efficient production and shift patterns.
The directors do not consider there to be any material uncertainties relating to going concern.
Dreambase Limited
Strategic Report for the Year Ended 31 March 2025
Key performance indicators (KPI's)
The group's key financial and other performance indicators during the year were as follows:
|
Year ended |
31 March 2025 |
31 March 2024 |
31 March 2023 |
||
|
Profit/(loss) for the financial year (%) |
(14.61)% |
(7.00)% |
(2.53)% |
||
|
Debtor days |
37 |
33 |
43 |
||
|
Creditor days |
159 |
136 |
121 |
||
|
Stock days |
114 |
155 |
149 |
||
|
Current ratio |
0.73 |
1.09 |
1.22 |
||
|
Acid ratio |
0.38 |
0.48 |
0.56 |
||
|
Interest cover |
(13.33) |
(3.28) |
(3.28) |
||
|
Net assets |
£(536,601) |
£703,621 |
£1,415,711 |
Principal risks and uncertainties
There are, as always, a number of risks and uncertainties which could have an impact on the group’s performance, both in the forthcoming year and in the longer term.
Risk management is an intrinsic part of the business to ensure that we manage the needs of stakeholders and that strategic objectives are met.
The group's operations are exposed to a variety of financial risks that include the effects of changes to customer credit risk and supply chain risk.
The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group. Policies are in place to limit the exposure to excess stock being carried forward from one year to the next. The group has reduced stock held to further reduce risks of stock becoming obsolete and to further increase liquidity.
The group has no significant concentrations of credit risk. Receivable balances are monitored on an ongoing basis to ensure the group's bad debt exposure is not significant. The group debtor book is fully insured as part of our risk mitigation. Customer invoice discounting provides sufficient working capital. Exposure to customer concentration is reduced.
Approved by the
.........................................
Director
Dreambase Limited
Directors' Report for the Year Ended 31 March 2025
The directors present their report and the for the year ended 31 March 2025.
Directors of the group
The directors who held office during the year were as follows:
Results
The results for the group are set out in the consolidated financial statements.
Dividends
Dividends amounting to £500 (2024 - £1,000) have been paid in respect of the financial year ended 31 March 2025.
Financial instruments
The group's principal financial instruments comprise bank balances, trade debtors, trade creditors, hire purchase obligations and other loans. The main purpose of these instruments is to finance the group's operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the group's cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk in policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances of doubtful debtors.
Trade creditors and other loans liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Research and development
The group will continue its policy of investment in research and development in order to retain a competitive position in the market.
Approved by the
.........................................
Director
Dreambase Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
|
• |
select suitable accounting policies and apply them consistently; |
|
• |
make judgements and accounting estimates that are reasonable and prudent; |
|
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
|
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Dreambase Limited
Independent Auditor's Report to the Members of Dreambase Limited
Opinion
We have audited the financial statements of Dreambase Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, 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).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2025 and of the group's 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. |
Basis for opinion
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 auditor 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 UK, including the FRC’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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Dreambase Limited
Independent Auditor's Report to the Members of Dreambase Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
|
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
|
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor responsibilities for the audit of the financial statements
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 auditor’s 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. Based on our understanding of the company and the nature of the industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation, employment regulations, health and safety regulations, anti-bribery, corruption and fraud, money laundering and we considered the extent to which non-compliance might have a material effect on the financial statements. We also identified financial reporting standards and the Companies Act 2006 as having a direct impact on the preparation of financial statements.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but are not limited to:
|
• |
Discussing with the directors and management their policies, procedures and related controls regarding compliance with laws and regulations and if there are any known instances with non-compliance; |
Dreambase Limited
Independent Auditor's Report to the Members of Dreambase Limited
|
• |
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; |
|
• |
Considering the risk of acts by the group which were contrary to applicable laws and regulations, including fraud; |
|
• |
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud; |
|
• |
Gaining an understanding of the internal controls established to mitigate risks related to fraud; |
|
• |
Discussing amongst the engagement team the risks of fraud; and |
|
• |
Addressing the risks of fraud through management override of controls by performing journal entry testing. |
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor's report.
Use of our 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 auditor’s 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
1st Floor, Block C
The Wharf
Manchester Road
Lancashire
BB11 1JG
Dreambase Limited
Consolidated Profit and Loss Account for the Year Ended 31 March 2025
|
Note |
2025 |
2024 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Distribution costs |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
- |
|
|
Operating loss |
( |
( |
|
|
Interest payable and similar expenses |
( |
( |
|
|
Loss before tax |
( |
( |
|
|
Tax on loss |
- |
( |
|
|
Loss for the financial year |
( |
( |
|
|
Profit/(loss) attributable to: |
|||
|
Owners of the company |
( |
( |
The above results were derived from continuing operations.
The group has no recognised gains or losses for the year other than the results above.
Dreambase Limited
(Registration number: 06819856)
Consolidated Balance Sheet as at 31 March 2025
|
Note |
2025 |
2024 |
|
|
Fixed assets |
|||
|
Tangible assets |
|
|
|
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current (liabilities)/assets |
( |
|
|
|
Total assets less current liabilities |
( |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Net (liabilities)/assets |
( |
|
|
|
Capital and reserves |
|||
|
Called up share capital |
20,001 |
20,001 |
|
|
Retained earnings |
(556,602) |
683,620 |
|
|
Equity attributable to owners of the company |
(536,601) |
703,621 |
|
|
Shareholders' (deficit)/funds |
(536,601) |
703,621 |
Approved and authorised by the
.........................................
Director
Dreambase Limited
(Registration number: 06819856)
Balance Sheet as at 31 March 2025
|
Note |
2025 |
2024 |
|
|
Fixed assets |
|||
|
Investments |
|
|
|
|
Current assets |
|||
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current liabilities |
( |
( |
|
|
Total assets less current liabilities |
( |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Net (liabilities)/assets |
( |
|
|
|
Capital and reserves |
|||
|
Called up share capital |
20,001 |
20,001 |
|
|
Retained earnings |
(106,072) |
1,003,899 |
|
|
Shareholders' (deficit)/funds |
(86,071) |
1,023,900 |
The company made a loss after tax for the financial year of £1,109,471 (2024 - loss of £21,392).
Approved and authorised by the
.........................................
Director
Dreambase Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 March 2025
Equity attributable to the parent company
|
Share capital |
Retained earnings |
Total |
Total equity |
|
|
At 1 April 2024 |
|
|
|
|
|
Loss for the year |
- |
( |
( |
( |
|
Dividends |
- |
( |
( |
( |
|
At 31 March 2025 |
|
( |
( |
( |
|
Share capital |
Retained earnings |
Total |
Total equity |
|
|
At 1 April 2023 |
|
|
|
|
|
Loss for the year |
- |
( |
( |
( |
|
Dividends |
- |
( |
( |
( |
|
At 31 March 2024 |
20,001 |
683,620 |
703,621 |
703,621 |
Dreambase Limited
Company Statement of Changes in Equity for the Year Ended 31 March 2025
|
Share capital |
Retained earnings |
Total |
|
|
At 1 April 2024 |
|
|
|
|
Loss for the year |
- |
( |
( |
|
Dividends |
- |
( |
( |
|
At 31 March 2025 |
|
( |
( |
|
Share capital |
Retained earnings |
Total |
|
|
At 1 April 2023 |
|
|
|
|
Loss for the year |
- |
( |
( |
|
Dividends |
- |
( |
( |
|
At 31 March 2024 |
20,001 |
1,003,899 |
1,023,900 |
Dreambase Limited
Consolidated Statement of Cash Flows for the Year Ended 31 March 2025
|
Note |
2025 |
2024 |
|
|
Cash flows from operating activities |
|||
|
Loss for the year |
( |
( |
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Loss on disposal of tangible assets |
|
|
|
|
Finance costs |
|
|
|
|
Corporation tax expense |
- |
|
|
|
( |
( |
||
|
Working capital adjustments |
|||
|
Decrease in stocks |
|
|
|
|
Decrease in trade debtors |
|
|
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Net cash flow from operating activities |
( |
|
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
- |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Proceeds from other borrowing draw downs |
|
- |
|
|
Repayment of other borrowing |
- |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
|
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
|
Cash and cash equivalents at 31 March |
138,454 |
256,676 |
|
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
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
|
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared on a going concern basis 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 group. Monetary amounts in these financial statements are rounded to the nearest £.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertaking drawn up to 31 March 2025.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiary, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
No profit or loss account is presented for the company as permitted by Section 408 of the Companies Act 2006.
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Going concern
The directors consider that there are no material uncertainties about the group's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the group with this going concern assessment made on the basis of the following:
The directors have introduced £370k into Sweet Dreams (Nelson) Limited to support its cash flow, this to be repaid only when trading conditions have improved substantially.
The trustees of the Riaz Ahmed Pension Scheme, which owns the properties used by the group, has agreed to waive rents again for the next financial year. The group is looking for alternative users of some of its space to reduce additional costs related to rates, insurance, and utilities.
The group has also consolidated its operations to one site, which has had no impact on production but has led to additional savings in insurance and utilities.
From a business perspective, a new model range has been developed alongside overall rebranding, and the activation of a significant number of dormant business to business accounts where discounts for floor placements have been set up. This has shown to be positive in encouraging new orders.
Following the year end, a review of staffing was conducted, with a reduction in staff numbers occuring through a redundancy programme. Whilst this resulted in a substantial cash outflow during the redundancy period, there has been a cost saving in the month that followed from the lower wage costs and the National Insurance and pension contributions that come with it.
Production and office hours have also reduced, with production only 3-4 days a week depending on orders and the office only working 4 days a week. This has delivered a saving in operating costs and overheads through more efficient production and shift patterns.
Turnover 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 group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The group recognises turnover when:
The amount of turnover 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 group's activities.
Foreign currency transactions and balances
Research and development
Research and development expenditure is written off as incurred.
Tax
The tax expense for the year comprises current and deferred tax.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
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.
Tangible assets
Tangible assets are stated at cost, less any accumulated depreciation and accumulated impairment losses.
The cost of tangible assets includes directly attributable costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Leasehold improvements |
Over 10 years straight line basis |
|
Fixtures and fittings |
25% per annum reducing balance basis |
|
Computer equipment |
33% per annum straight line basis |
|
Motor vehicles |
25% per annum reducing balance basis |
|
Plant and machinery |
12.5% & 33% per annum straight line basis |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
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.
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. A provision for the impairment of trade debtors is established when there is objective evidence that the group 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.
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
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 group 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.
Borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently they are measured at amortised cost using the effective interest rate method. If an arrangement constitutes a finance transaction it is measured at present value.
Hire purchase and leasing
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.
Assets acquired under finance leases are capitalised and depreciated over the expected life of the asset. Lease payments are apportioned between the finance charges and the reduction of the outstanding lease liability using the effective interest method.
Assets acquired under hire purchase agreements are capitalised and depreciated over the expected life of the asset. Hire purchase payments are apportioned between the finance charges and the reduction of the outstanding hire purchase liability using the effective interest method.
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.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.
Financial instruments
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Judgements and key sources of estimation uncertainty |
Judgements
In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilites that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation
The depreciation expense is the recognition of the decline in the value of the asset and allocation of the cost of the asset over the periods in which the asset will be used. Judgements are made as to the estimated useful life of the assets. These judgements are regularly reviewed to reflect the changing environment.
Impairment of fixed assets
The group assesses the impairment of tangible fixed assets and intangible assets subject to depreciation whenever events or changes in circumstances indicate that the carrying value may not be recoverable. These judgements are regularly reviewed to reflect the changing environment.
Stock provision
The provision is based on a review of old/slow moving stock lines and the estimated realisation of that stock. The estimated realisation is based on past experience and subsequent recovery after the year end. These judgements are regularly reviewed to reflect the changing environment.
Bad debt provision
The bad debt provision is based on a review of old/slow paying customer balances and the estimated recoverability of those balances. Estimated recoverability is based on past experience and subsequent recovery after the year end. These judgements are regularly reviewed to reflect the changing environment.
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Sale of goods |
|
|
The analysis of the group's turnover for the year by market is as follows:
|
2025 |
2024 |
|
|
UK |
|
|
|
Europe |
|
|
|
|
|
|
Operating loss |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - property |
- |
|
|
Operating lease expense - motor vehicles |
|
|
|
Loss on disposal of plant, machinery and motor vehicles |
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
Other finance costs |
|
|
|
|
|
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Sales, marketing and distribution |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
223,684 |
252,642 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Company contributions to money purchase pension schemes |
|
|
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of these financial statements |
3,900 |
3,250 |
|
Audit of the financial statements of subsidiary |
15,989 |
13,300 |
|
|
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2025 |
2024 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
- |
|
The tax on loss before tax for the year is lower than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Loss before tax |
( |
( |
|
Corporation tax at standard rate |
( |
( |
|
Effect of expense not deductible in determining taxable profit/(loss) |
|
|
|
Deferred tax (credit)/expense from unrecognised tax asset |
( |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Tax increase from effect of unrelieved tax losses carried forward |
|
|
|
Tax decrease from effect of consolidation adjustments |
- |
( |
|
Tax decrease from changes in tax legislation |
- |
( |
|
Total tax charge |
- |
|
The group has trading losses not reflected through deferred tax of £3,035,713 which may be recoverable against future trading profits recognised.
The group has capital losses not reflected through deferred tax of £287,345 which may be recoverable against future chargeable gains recognised.
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Tangible assets |
Group
|
Leasehold improvements |
Fixtures, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
|
Cost |
|||||
|
At 1 April 2024 |
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
Disposals |
( |
( |
( |
( |
( |
|
At 31 March 2025 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 April 2024 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
( |
( |
( |
( |
( |
|
At 31 March 2025 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 March 2025 |
|
|
|
|
|
|
At 31 March 2024 |
|
|
|
|
|
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2025 |
2024 |
|
|
Plant and machinery |
210,509 |
262,850 |
|
Motor vehicles |
28,788 |
- |
|
239,298 |
262,850 |
Company
|
Plant and machinery |
Total |
|
|
Cost |
||
|
At 1 April 2024 |
|
|
|
At 31 March 2025 |
|
|
|
Depreciation |
||
|
At 1 April 2024 |
|
|
|
At 31 March 2025 |
|
|
|
Carrying amount |
||
|
At 31 March 2025 |
- |
- |
|
At 31 March 2024 |
- |
- |
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Investments |
Company
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost |
|
|
At 1 April 2024 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 March 2025 |
|
|
At 31 March 2024 |
|
The net liabilities of the subsidiary company at the year ending 31 March 2025 were £527,068. This amount is lower than the cost of acquiring the shares (£1,415,000) in in the company by £1,942,068. The directors consider the value of the investment is permanently overstated by £1m and a provision has been made for this, based on the assumptions made by the directors for future prospects of the company.
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertaking |
||||
|
|
Primrose Mill, Martin Street, Burnley, Lancashire, BB10 1SH |
Ordinary shares |
|
|
|
Sweet Dreams (Nelson) Limited The principal activity of Sweet Dreams (Nelson) Limited is |
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Stocks |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Raw materials |
|
|
- |
- |
|
Work in progress |
- |
|
- |
- |
|
Finished goods |
|
|
- |
- |
|
|
|
- |
- |
|
|
Debtors |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Trade debtors |
|
|
- |
- |
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
- |
|
|
|
|
|
|
|
|
Creditors |
|
Group |
Company |
||||
|
Note |
2025 |
2024 |
2025 |
2024 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
- |
|
|
|
Amounts due to group undertaking |
- |
- |
|
|
|
|
Social security and other taxes |
|
|
( |
|
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
|
Accruals |
|
|
|
|
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
20,001 |
|
20,001 |
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
|
|
|
|
Hire purchase contracts |
|
|
- |
- |
|
|
|
|
|
|
Current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
|
|
|
|
Hire purchase contracts |
|
|
- |
- |
|
Other borrowings |
|
|
- |
- |
|
|
|
|
|
|
Bank borrowings
Bank borrowings are secured by legal charges over all property and undertakings of the subsidiary dated 16 September 2019, and an unlimited debenture secured on all property and assets of the group dated 2 April 2009.
Hire purchase contracts
Hire purchase contracts are secured on the assets concerned.
Other borrowings
Customer invoice discounting is secured by legal charges over all property and undertakings of the group dated 29 July 2022.
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Obligations under leases and hire purchase contracts |
Group
Hire purchase contracts
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Later than one year and not later than five years |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dreambase Limited
Notes to the Financial Statements for the Year Ended 31 March 2025
|
Related party transactions |
Group
Summary of transactions with other related parties
Expenditure with and payables to related parties
|
2025 |
Other related parties |
|
Amounts payable to related party |
|
|
|
|
|
2024 |
Other related parties |
|
Lease of property |
|
|
Amounts payable to related party |
|
|
|
|
Company
|
Transactions with directors |
|
2025 |
At 1 April 2024 |
Repayments by director |
At 31 March 2025 |
|
Mr R Ahmed |
|||
|
Loans to director |
|
( |
|
|
2024 |
At 1 April 2023 |
Repayments by director |
At 31 March 2024 |
|
Mr R Ahmed |
|||
|
Loans to director |
|
( |
|
|
Ultimate controlling party |
The ultimate controlling party is