Duo Assets Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05167242 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Period 1 April 2018 to 30 June 2019

for

Duo Assets Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

K E Darch

L B McAlister

D Williams

S J Hall

M F Mc Williams

REGISTERED OFFICE:

Silverdown House

5 Silverdown Office Park

Fair Oak Close

Clyst Honiton, Exeter

Devon

EX5 2UX

REGISTERED NUMBER:

05167242 (England and Wales)

AUDITORS:

Thornton Springer LLP

Chartered Accountants and

Statutory Auditor

67 Westow Street

Upper Norwood

London

SE19 3RW

The directors present their strategic report of the company and the group for the period 1 April 2018 to 30 June 2019.

REVIEW OF BUSINESS

Group turnover has increased to £22,244,804 from £11,563,779 in 2018. The gross profit margin for the year is 28%

compared to 37% in 2018.

Overheads in the year totalled £4,640,861 generating a profit before taxation of £532,551.

The group has maintained good results during the year and it expects this to continue for the foreseeable future.

The directors are committed to ensuring the group provides the best possible service to its customers. This has included

strategic investment in new staff, plant and technology to ensure we can meet the customers' requirements.

The group continues to secure additional contracts to increase its turnover and gross profit margin for 2020, with the aim

to produce a higher net profit before taxation. The strategy of 'Long Term Contracts with Blue Chip Companies'

continues to guide the group's growth through organic market development and intentional expansion through strategic

partnering and acquisition.

The group is well placed to meet growing demands within the current industry sectors and anticipated increase in major

UK projects.

The group operates in a competitive market which is a continuing risk. The group manages this risk by providing an

excellent service in all its activities. There is continued strategic investment in the plant to ensure there is a modern fleet

capable of meeting the customers' requirements.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's activities expose it to a number of financial risks including credit risk and liquidity risk.

Credit risk

The group's principal financial assets are cash and trade debtors.

The group's credit risk is primarily attributable to its trade debtors, however, the customer spread is expanding in both

number and value, correcting the previous concentrated risk on few key customers; although Duo Assets would still

prefer to maximise any customer relationship opportunity presented. Duo Assets' customers are mostly corporate entities

with long standing strong relationships. Duo Assets continues to seek additional opportunities in sectors not seasonally

affected, in line with previously stated objectives to broaden the customer base.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future

developments the group has access to short term and long term debt finance.

The key liquidity risk affecting the group is the ability to maintain their finance lease commitments to ensure their

income streams continue to flow.

Despite the value of the finance being significant, the finance is obtained from companies with high credit ratings

assigned by international credit rating agencies. Therefore there is no significant concern over obtaining further finance.

The principal KPIs used by the directors to assess the performance and position of the business of the group are as

follows:

Operating profit

Operating profit and profit before tax are key measures of the group's performance. The group generated an operating

profit of £1,601,063 in 2019 compared with an operating profit of £847,085 in 2018.

Net assets

The directors also monitor the position of net assets within the group. The group's net assets increased by £209,519,

29% from 2018.

ON BEHALF OF THE BOARD:

M F Mc Williams - Director

27 March 2020

The directors present their report with the financial statements of the company and the group for the period 1 April 2018

to 30 June 2019.

PRINCIPAL ACTIVITY

The principal activity of the group in the period under review was that of specialist land excavation and remediation,

offering clients a full range of services which include the facility for small, medium or large scale earthworks and

landscaping.

The company also deal in the sale of specialist plant and equipment for use in land excavation and earthworks

DIVIDENDS

No dividends will be distributed for the period ended 30 June 2019.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

K E Darch

L B McAlister

Other changes in directors holding office are as follows:

T R Last - resigned 15 January 2019

D Williams - appointed 18 June 2018

S J Hall and M F Mc Williams were appointed as directors after 30 June 2019 but prior to the date of this report.

P Doran and O S Bolt ceased to be directors after 30 June 2019 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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

company and the group 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 then apply them consistently;

-	make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group 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 company and the group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have

taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the

group's auditors are aware of that information.

AUDITORS

The auditors, Thornton Springer LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

M F Mc Williams - Director

27 March 2020

Opinion

We have audited the financial statements of Duo Assets Limited (the 'parent company') and its subsidiaries (the 'group')

for the period ended 30 June 2019 which comprise the Consolidated Statement of Comprehensive Income, Consolidated

Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes

in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 of the parent company affairs as at 30 June 2019 and of the group's profit for the period 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 Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the group in accordance with the ethical requirements

that are relevant to our audit of the financial statements in the 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the

Auditors 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.

Opinions on other matters 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the

course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Directors.

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 four, 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 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 group's and the parent 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 group or the parent company or to cease

operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Stephen A Kaye (Senior Statutory Auditor)

for and on behalf of Thornton Springer LLP

Chartered Accountants and

Statutory Auditor

67 Westow Street

Upper Norwood

London

SE19 3RW

27 March 2020

TURNOVER

4

22,244,804

11,563,779

Cost of sales

(16,003,003

)

(7,315,504

)

GROSS PROFIT

6,241,801

4,248,275

Administrative expenses

(4,640,861

)

(3,401,190

)

1,600,940

847,085

Other operating income

123

-

OPERATING PROFIT

6

1,601,063

847,085

Interest receivable and similar income

39,915

-

1,640,978

847,085

Interest payable and similar expenses

7

(1,108,427

)

(581,466

)

PROFIT BEFORE TAXATION

532,551

265,619

Tax on profit

8

(323,032

)

(27,620

)

PROFIT FOR THE FINANCIAL PERIOD

209,519

237,999

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

209,519

237,999

Profit attributable to:

Owners of the parent

209,519

237,999

Total comprehensive income attributable to:

Owners of the parent

209,519

237,999

FIXED ASSETS

Intangible assets

10

959,390

-

Tangible assets

11

15,020,580

10,890,054

Investments

12

-

-

15,979,970

10,890,054

CURRENT ASSETS

Debtors

13

6,009,307

3,660,616

Cash at bank and in hand

65,253

77,551

6,074,560

3,738,167

CREDITORS

Amounts falling due within one year

14

(8,622,405

)

(3,678,884

)

NET CURRENT (LIABILITIES)/ASSETS

(2,547,845

)

59,283

TOTAL ASSETS LESS CURRENT LIABILITIES

13,432,125

10,949,337

CREDITORS

Amounts falling due after more than one year

15

(12,210,772

)

(10,260,535

)

PROVISIONS FOR LIABILITIES

19

(501,072

)

(178,040

)

NET ASSETS

720,281

510,762

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

720,181

510,662

SHAREHOLDERS' FUNDS

720,281

510,762

The financial statements were approved by the Board of Directors on 27 March 2020 and were signed on its behalf by:

M F Mc Williams - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

15,020,580

10,890,054

Investments

12

99

99

15,020,679

10,890,153

CURRENT ASSETS

Debtors

13

2,246,382

1,682,065

Cash in hand

98

98

2,246,480

1,682,163

CREDITORS

Amounts falling due within one year

14

(5,674,266

)

(2,609,932

)

NET CURRENT LIABILITIES

(3,427,786

)

(927,769

)

TOTAL ASSETS LESS CURRENT LIABILITIES

11,592,893

9,962,384

CREDITORS

Amounts falling due after more than one year

15

(12,010,772

)

(10,260,535

)

PROVISIONS FOR LIABILITIES

19

(501,072

)

(178,040

)

NET LIABILITIES

(918,951

)

(476,191

)

CAPITAL AND RESERVES

Called up share capital

20

100

100

Retained earnings

21

(919,051

)

(476,291

)

SHAREHOLDERS' FUNDS

(918,951

)

(476,191

)

Company's loss for the financial year

(442,760

)

(278,900

)

The financial statements were approved by the Board of Directors on 27 March 2020 and were signed on its behalf by:

M F Mc Williams - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

100

272,663

272,763

Changes in equity

Total comprehensive income

-

237,999

237,999

Balance at 31 March 2018

100

510,662

510,762

Changes in equity

Total comprehensive income

-

209,519

209,519

Balance at 30 June 2019

100

720,181

720,281

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

100

(197,391

)

(197,291

)

Changes in equity

Total comprehensive income

-

(278,900

)

(278,900

)

Balance at 31 March 2018

100

(476,291

)

(476,191

)

Changes in equity

Total comprehensive income

-

(442,760

)

(442,760

)

Balance at 30 June 2019

100

(919,051

)

(918,951

)

Cash flows from operating activities

Cash generated from operations

1

3,750,320

2,531,557

Interest paid

(62,392

)

(29,450

)

Interest element of hire purchase payments paid

(1,046,035

)

(552,016

)

Tax paid

-

(23,157

)

Net cash from operating activities

2,641,893

1,926,934

Cash flows from investing activities

Purchase of tangible fixed assets

(9,818,553

)

(5,663,785

)

Sale of tangible fixed assets

4,116,337

1,864,398

Net cash acquired in group interest

1,838

-

Payment to acquire group interest

(1,216,500

)

-

Net cash from investing activities

(6,916,878

)

(3,799,387

)

Cash flows from financing activities

Capital repayments in year

3,852,605

1,748,464

Amount introduced by directors

71,559

35,000

Amount withdrawn by directors

(45,857

)

(49,207

)

Net cash from financing activities

3,878,307

1,734,257

Decrease in cash and cash equivalents

(396,678

)

(138,196

)

Cash and cash equivalents at beginning of period

2

76,907

215,103

Cash and cash equivalents at end of period

2

(319,771

)

76,907

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.4.18

to

Year Ended

30.6.19

31.3.18

£

£

Profit before taxation

532,551

265,619

Depreciation charges

2,481,376

2,233,544

Profit on disposal of fixed assets

(772,630

)

(226,485

)

Finance costs

1,108,427

581,466

Finance income

(39,915

)

-

3,309,809

2,854,144

Decrease in stocks

-

2,942

Increase in trade and other debtors

(312,787

)

(2,495

)

Increase/(decrease) in trade and other creditors

753,298

(323,034

)

Cash generated from operations

3,750,320

2,531,557

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these

Balance Sheet amounts:

Period ended 30 June 2019

30.6.19

1.4.18

£

£

Cash and cash equivalents

65,253

77,551

Bank overdrafts

(385,024

)

(644

)

(319,771

)

76,907

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

77,551

215,103

Bank overdrafts

(644

)

-

76,907

215,103

1.	STATUTORY INFORMATION

Duo Assets Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been 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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the recognition

of certain financial assets and liabilities measured at fair value.

Basis of consolidation

The consolidated financial statements incorporate the financial statements of Duo Assets Limited and its

subsidiary undertakings made up to the year end date. The group profit and loss accounts includes the results of

the subsidiary undertaking for the period from the date of their acquisition and up to the date of disposal.

Turnover and profits arising on trading between group companies are excluded.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions

that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for

revenue and expenses during the year. However, the nature of estimation means that actual outcomes could differ

from those estimates.

Depreciation of plant and machinery

Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as

set out above. The selection of these residual values and estimated lives requires the exercise of management

judgement. See note 11 for further details.

Turnover

Turnover is measured at the fair value of invoiced sales and contracts of services, excluding discounts, rebates,

value added tax and other sales taxes. In respect of service contracts turnover is recognised when the company

obtains the right to consideration.

Goodwill

Goodwill arising on an acquisition of a subsidiary undertaking is the difference between the fair value of the

consideration paid and the fair value of the assets and liabilities acquired. Goodwill is capitalised and amortised

through the profit and loss account over the directors' estimate of its useful economic life which ranges from 5 to

10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on reducing balance and 10 to 50% Straight line

Motor vehicles

-

20% on reducing balance