Dantec Dynamics Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01730643 (England and Wales)

Financial Statements for the Year Ended 31 December 2021

for

Dantec Dynamics Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Ms J Barbookles

M A Larkin

SECRETARY:

Oakwood Corporate Secretary Limited

REGISTERED OFFICE:

3rd Floor

1 Ashley Road

Altrincham

Cheshire

WA14 2DT

REGISTERED NUMBER:

01730643 (England and Wales)

SENIOR STATUTORY AUDITOR:

Matthew Dobbins FCA

AUDITORS:

Dunkley's

Statutory Auditor

Chartered Accountants

Woodlands Grange

Woodlands Lane

Bradley Stoke

Bristol

BS32 4JY

BANKERS:

HSBC Bank plc

62 George Street

Cabot Circus

Bristol

BS1 3BA

FIXED ASSETS

Tangible assets

4

12,746

28,655

CURRENT ASSETS

Stocks

5

86,578

128,762

Debtors

6

297,303

444,399

Cash at bank and in hand

150,484

192,575

534,365

765,736

CREDITORS

Amounts falling due within one year

7

2,594,941

2,663,020

NET CURRENT LIABILITIES

(2,060,576

)

(1,897,284

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(2,047,830

)

(1,868,629

)

CREDITORS

Amounts falling due after more than one year

8

(25,029

)

(19,511

)

PENSION LIABILITY

13

(261,000

)

(527,000

)

NET LIABILITIES

(2,333,859

)

(2,415,140

)

CAPITAL AND RESERVES

Called up share capital

11

150,000

150,000

Retained earnings

(2,483,859

)

(2,565,140

)

SHAREHOLDERS' FUNDS

(2,333,859

)

(2,415,140

)

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2022 and were signed on its behalf by:

M A Larkin - Director

1.	STATUTORY INFORMATION

Dantec Dynamics 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 Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue recognition

Revenue will not be recognised unless it is probable that economic benefit will flow to the company and the amount can be measured reliably.

Sale of goods

Revenue is recognised at the point that the significant risks and rewards of ownership are transferred to the buyer.

Rendering of services

Revenue is recognised on a straight line basis over the specified period.

Intangible fixed assets and amortisation

Expenditure incurred on software is carried forward at cost.

Amortisation is calculated so as to write off the cost of an asset, less its economic residual value, over the useful economic life of the asset as follows:

Intangible costs

-

Straight line over 3 years

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated

useful life.

Fixtures and fittings

-

Straight line over 3 years

Demo assets and service equipment

-

Straight line over 3 years

Demo assets are held primarily for generating sales and are depreciated entirely over their expected useful economic life of 3 years.

Any demo assets that are sold are deemed to be part of normal trade and are transferred to the stock lists at their carrying value immediately prior to sale.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Work in progress is valued on the basis of direct costs plus attributable overheads based upon a normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined benefit pension scheme, which is a funded defined benefit arrangement.

The actuary has based the IAS 19 results and disclosures of the scheme as at the balance sheet date on the results of individual valuation calculations, using the full member data from the Scheme's administrators, Aviva.

It is the policy of the company to recognise the actuarial gains and losses via Other Comprehensive Income.

This policy is an extension to the requirements of Financial Reporting Standard 102 section 28 (Employee Benefits) and United Kingdom Generally Accepted Accounting Practice and is in alignment with IAS 19 under the International Financial Reporting Standards.

The above policy has been adopted to bring the company in line with group policy and applies the true and fair override.

The effect of the departure does not result in any difference in the valuations for the current year, nor for the comparative year.

The deferred tax asset relating to the defined benefit liability is only recognised to the extent that the actuarial deficit is probable to reverse in future, in line with Financial Reporting Standard 102 section 29 (Income Tax).

The company also operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to the profit and loss account in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 7 (2020 - 10 ) .

4.	TANGIBLE FIXED ASSETS

Demo

assets

Fixtures

and

and

service

fittings

equipment

Totals

£

£

£

COST

At 1 January 2021

12,943

76,902

89,845

Additions

-

3,183

3,183

Disposals

-

(14,003

)

(14,003

)

At 31 December 2021

12,943

66,082

79,025

DEPRECIATION

At 1 January 2021

12,230

48,960

61,190

Charge for year

713

17,290

18,003

Eliminated on disposal

-

(12,914

)

(12,914

)

At 31 December 2021

12,943

53,336

66,279

NET BOOK VALUE

At 31 December 2021

-

12,746

12,746

At 31 December 2020

713

27,942

28,655

5.

STOCKS

31.12.21

31.12.20

£

£

Finished goods

86,578

128,762

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade debtors

246,148

428,825

Other debtors

31,559

1,359

Prepayments and accrued income

19,596

14,215

297,303

444,399

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

£

£

Trade creditors

68,746

51,011

Amounts owed to group undertakings

2,261,235

2,302,511

Social security and other taxes

86,244

150,523

Other creditors

2,209

2,075

Accruals and deferred income

176,507

156,900

2,594,941

2,663,020

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

£

£

Accruals and deferred income

25,029

19,511

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.21

31.12.20

£

£

Within one year

48,816

7,221

Between one and five years

139,550

10,063

188,366

17,284

10.	SECURED DEBTS

Bank facilities, although not presently utilised, are secured by a fixed charge on all book debts and a floating charge on all other assets of the company.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.21

31.12.20

value:

£

£

150,000

Ordinary

£1

150,000

150,000

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Matthew Dobbins FCA (Senior Statutory Auditor)

for and on behalf of Dunkley's

13.	EMPLOYEE BENEFIT OBLIGATIONS

The Company operates a defined benefit Scheme in the UK. The Scheme is closed to new entrants and there are no employees currently accruing further benefits in the Scheme. All Scheme members are terminated vested employees or retirees. The Scheme is exposed to the following risks:

- Financial risks from changing economic conditions, e.g. inflation and interest rate risks

- Longevity, i.e. the risk of benefits costing more due to members living longer

Under UK pensions legislation, the Company is responsible for funding the Scheme benefits and for paying contributions to make up any shortfall between the assets and the liabilities of the Scheme. The Scheme liabilities are assessed at least every three years by the Scheme's actuary. It is the Company's funding policy to annually contribute an amount agreed between the Company and the Trustees of the Scheme in accordance with UK legislative requirements if a funding deficit exists. The amount of contributions required depends on the assumptions used by the actuary and can therefore be volatile between actuarial valuations. The volatility of the Scheme's liabilities against the assets held impacts on the Company's balance sheet.

To mitigate some risk, the Scheme matches the liabilities from benefits in payment by securing member benefits on retirement through the purchase of annuities with an insurance company. The annuities are purchased in the Trustees' name and remain an asset of the Scheme. The value of the purchased annuities exceeds the liability of the Scheme in respect of the benefits secured.

A full actuarial valuation was carried out at 1 April 2019. The Company paid Contributions at a rate of £13,819 per month until 1 April 2020. In line with the Recovery Plan dated 21 April 2020, the Company paid no contributions between April and September 2020. From 1 October 2020, the Company paid contributions (including an allowance for expenses) at a rate of £14,879 per month. Contributions are then expected to be approximately £14,935 per month, inclusive of expenses, from 1 April 2022 (the allowance for expenses will increase annually in line with inflation). The results used for this disclosure as at 31 December 2021 have been calculated by a qualified actuary, independent of the scheme's sponsoring employer. The major assumptions used by the actuary to update the results are shown below.

The amounts recognised in profit or loss are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

Current service cost

-

-

Net interest from net defined benefit asset/liability

6,000

13,000

Past service cost

-

-

6,000

13,000

Actual return on plan assets

106,000

592,000

Allowing for the change in value of the insured annuities, the actual return on scheme assets over the period ending 31 December 2020 was £106,000

Changes in the present value of the defined benefit obligation are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

Opening defined benefit obligation

5,868,000

5,530,000

Interest cost

78,000

113,000

Actuarial losses/(gains)

(59,000

)

487,000

Benefits paid

(175,000

)

(262,000

)

5,712,000

5,868,000

Changes in the fair value of scheme assets are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

Opening fair value of scheme assets

5,341,000

4,925,000

Contributions by employer

179,000

86,000

Expected return

72,000

100,000

Actuarial gains/(losses)

34,000

492,000

Benefits paid

(175,000

)

(262,000

)

5,451,000

5,341,000

The amounts recognised in other comprehensive income are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

Actuarial gains/(losses)

93,000

5,000

93,000

5,000

The major categories of scheme assets as amounts of total scheme assets are as follows:

Defined benefit

pension plans

31.12.21

31.12.20

£

£

Deferred allocation funding

2,166,000

2,059,000

Insured annuities

3,281,000

3,276,000

Net current assets

4,000

6,000

5,451,000

5,341,000

Non of the fair value of assets shown above include any of the Company's own financial instruments or any property occupied by, or other assets used by, the Company.

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

31.12.21

31.12.20

Discount rate

1.89%

1.34%

Inflation (RPI)

3.50%

3.07%

Pre 2030 Inflation (CPI)

2.60%

2.17%

Revaluation of deferred pensions

3.50%

3.07%

Pre 2030 increases of CPI*

2.60%

2.17%

Pension in payment increases of RPI

2.50%

2.50%

Post 2030 Inflation (CPI)

3.40%

2.87%

Post 2030 increases of CPI*

3.40%

2.87%

* - (Pension in payment increases of CPI or 5% p.a. if less)

The mortality assumptions adopted at 31 December 2021 imply the following life expectancies:

31.12.21

31.12.20

Male retiring at age 60 in 2021

26.4

26.4

Female retiring at age 60 in 2021

29.0

28.9

Male retiring at age 60 in 2041

27.5

27.5

Female retiring at age 60 in 2041

30.1

30.1

Expected Contributions for Following Financial Year

31.12.21

31.12.20

Regular employer contributions

179,000

178,000

Member contributions

-

-

Sensitivity Assumption

Change in the Liabilities %

Change in the Assets %

Assumptions as per IAS19 Disclosures

0.25% p.a. reduction in discount rate

4.7%

1.6%

0.25% p.a. increase in inflation

2.6%

1.6%

Pensions payable for 1 year longer due to mortality assumptions

3.6%

3.1%

The sensitivities show the maximum effect of a change in the significant actuarial assumptions used to measure the Scheme's Obligation on both the Obligation and the Scheme Assets. The Scheme Assets are sensitive to the assumptions due to the valuation of the annuities held by the Scheme to secure members' benefits in payment. The sensitivities are based on approximate calculations.

The Guaranteed Annuity Rates available to the Scheme under the DAF limit the effect of a change in these assumptions on the benefit obligation. The weighted average duration of the Scheme's Obligation is approximately 19 years.

Defined contribution scheme

During the year, the company operated a defined contribution pension scheme through an external provider.

Employer contributions to the scheme for the year totalled £27,106 (2020 - £26,700).

Accrued pension contributions outstanding at the balance date totalled £2,609 (2020 - £2,475).

14.	RELATED PARTY DISCLOSURES

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.

The parent of the smallest group for which consolidated financial statements are drawn up of which this company is a member is Dantec Dynamics A/S (registered in Denmark). The registered office is Tonsbakken 16-18, 2740 Skovlunde, Denmark.

15.	FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.