Display Mode Limited - Filleted accounts

DISPLAY MODE LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 MARCH 2022

Company Registration Number: 06887853

DISPLAY MODE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
CONTENTS									PAGES
Company information									1
Balance sheet									2 to 3
Notes to the financial statements									4 to 12

DISPLAY MODE LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2022
DIRECTORS
L Edwards
B Brooker
appointed 13 June 2022
SECRETARY
The company does not have an appointed secretary
REGISTERED OFFICE
4 Princewood Road
Corby
Northants
NN17 4AP
COMPANY REGISTRATION NUMBER
06887853 England and Wales

DISPLAY MODE LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
			Notes		2022				2021
					£				£
FIXED ASSETS
Intangible assets			5				100				100
Tangible assets			6				171,156				200,945
							171,256				201,045
CURRENT ASSETS
Stock					131,210				148,847
Debtors			7		4,051,866				5,211,090
Cash at bank and in hand					334,185				705,668
					4,517,261				6,065,605
CREDITORS: Amounts falling due
within one year			8		457,872				1,442,431
NET CURRENT ASSETS							4,059,389				4,623,174
TOTAL ASSETS LESS CURRENT LIABILITIES							4,230,645				4,824,219
Provisions for liabilities and charges							24,090				23,198
NET ASSETS							4,206,555				4,801,021
CAPITAL AND RESERVES
Called up share capital							2				2
Distributable profit and loss account							4,206,553				4,801,019
SHAREHOLDER'S FUNDS							4,206,555				4,801,021

DISPLAY MODE LIMITED
BALANCE SHEET
AS AT 31 MARCH 2022
These accounts have been prepared and delivered in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
For the financial year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
Members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
As permitted by S444 (5A) of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company’s Profit and Loss Account or Directors Report.
Signed on behalf of the board of directors
L Edwards						B Brooker
Director						Director
Date approved by the board: 19 December 2022

DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
1	GENERAL INFORMATION
	Display Mode Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is:
	4 Princewood Road
	Corby
	Northants
	NN17 4AP
	The financial statements are presented in Sterling, which is the functional currency of the company.
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of preparation of financial statements
	These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
	Revenue recognition

	Turnover is measured at the fair value of consideration received or receivable and represents the sale of display stands and associated products and Personal protective equipment, stated net of trade discounts and value added tax.
	The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the entity.

	Intangible fixed assets

	Intangible fixed assets, other than goodwill, are stated at cost less accumulated amortisation and any accumulated impairment losses. Licences are amortised on a straight-line basis over their useful economic life of 2 years.

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new expectations.

DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Tangible fixed assets

	Fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses.

	Depreciation has been provided at the following rate so as to write off the cost or valuation of assets less residual value of the assets over their estimated useful lives.
	Plant, machinery and office equipment					Reducing balance basis at 20% per annum
	Motor vehicles					Reducing balance basis at 33% per annum
	Website					Straight line basis at 20% per annum
	On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the profit and loss account, and included within administrative expenses.
	Financial Instruments
	The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
	Financial assets are measured at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

The impairment loss for financial assets measured at cost is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

	Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Impairment of non-financial assets

	At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit and loss account.
	Stocks are assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less cost to complete and sell. If an item of stock, or group of similar items, is impaired its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the profit and loss account.
	If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in the profit and loss account.

	Stock

	Stock has been valued at the lower of cost and estimated selling price less cost to complete and sell, after making due allowance for obsolete and slow-moving items. Cost comprises the cost of goods purchased valued on a first in first out basis.
	The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised

	Debtors

	Short term debtors are measured at transaction price, less any impairment.

	Creditors
	Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.

DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Leases
	Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases.
	Payments applicable to operating leases are charged against profit on a straight line basis over the lease term.
	Taxation
	Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period.
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods based on current tax rates and laws. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 taxable profits.
	Deferred tax is measured using 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.

	Current and deferred tax assets and liabilities are not discounted.
	Foreign currencies

	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
	Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rate of exchange prevailing at that date. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit or loss.

DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Provisions
	A provision for annual leave accrued by employees as a result of services rendered in the current period, and which employees are entitled to carry forward and use is recognised. The provision is measured at the salary cost payable for the period of absence.
	Pensions
	The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments in the balance sheet.
	Research and development
	Research and development expenditure has been written off against profits in the year in which it is incurred.
3	CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

	The director has made key assumptions in determination of the useful economic life of intangible assets.

4	EMPLOYEES
	The average number of persons employed by the company (including directors) during the year was:
									2022		2021
	Average number of employees								22		19

DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
5	INTANGIBLE FIXED ASSETS
							Licences		Trademark		Total
							£		£		£
	Cost
	At 1 April 2021						272,483		100		272,583
	At 31 March 2022						272,483		100		272,583
	Accumulated amounts written off
	At 1 April 2021						272,483		-		272,483
	At 31 March 2022						272,483		-		272,483
	Net book value
	At 1 April 2021						-		100		100
	At 31 March 2022						-		100		100

DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
6	TANGIBLE ASSETS
					Plant, machinery and office equipment		Motor vehicles		Website		Total
					£		£		£		£
	Cost
	At 1 April 2021				625,476		50,006		43,390		718,872
	Additions				2,965		24,265		-		27,230
	Reclassify assets				3,029		-		(3,029)		-
	Disposals				-		(36,221)		-		(36,221)
	At 31 March 2022				631,470		38,050		40,361		709,881
	Accumulated depreciation and impairments
	At 1 April 2021				460,848		39,366		17,713		517,927
	Charge for year				34,065		8,771		5,858		48,694
	Reclassify assets				433		-		(433)		-
	Disposals				-		(27,896)		-		(27,896)
	At 31 March 2022				495,346		20,241		23,138		538,725
	Net book value
	At 1 April 2021				164,628		10,640		25,677		200,945
	At 31 March 2022				136,124		17,809		17,223		171,156

DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
7	DEBTORS
									2022		2021
									£		£
	Trade debtors								624,211		2,694,667
	Prepayments and accrued income								38,760		41,104
	Other debtors								3,388,895		2,475,319
									4,051,866		5,211,090
8	CREDITORS: Amounts falling due within one year
									2022		2021
									£		£
	Trade creditors								264,158		835,279
	Taxation and social security								125,078		498,923
	Accruals and deferred income								63,716		99,547
	Other creditors								4,920		8,682
									457,872		1,442,431
9	CONTINGENCIES AND COMMITMENTS
	Other Commitments
	Amounts falling due under operating leases:								2022		2021
									£		£
	In less than one year								53,097		70,187
	In more than one but less than five years								96,810		146,651
									149,907		216,838

DISPLAY MODE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
10	RELATED PARTY TRANSACTIONS
	The company has claimed exemptions from reporting disclosure of related party transactions with the following wholly owned group members:
	Ashbrook Rees Limited			Immediate parent company
	DM Employee Ownership Trust			Ultimate parent entity
	During the year, the following transactions with related parties took place:
	L Edwards
	Director								2022		2021
									£		£
	Advances from director		The director has made advances to the company which are repayable on demand. No interest has been charged on these advances. At the year end, the company owed the director the following amount.						5,238		6,975
	DM Employee Ownership Trust
	Ultimate Parent Entity								2022		2021
									£		£
	Guarantee		During the year ended 31 March 2021, the shares in the company's parent company, Ashbrook Rees Limited, were sold to an Employee Ownership Trust. Display Mode Limited is acting as a guarantor in respect of the Deferred Payment amount that remains outstanding in accordance with the Share Purchase Agreement. At 31 March 2022, the following Deferred Payment amount was outstanding:						2,400,000		3,850,000