DBR (London) Limited - Limited company accounts 20.1
DBR (London) Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2021 |
FOR |
DBR (LONDON) LIMITED |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 14 |
DBR (LONDON) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2021 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Sterling House |
27 Hatchlands Road |
Redhill |
Surrey |
RH1 6RW |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2021 |
The directors present their strategic report for the year ended 31 May 2021. |
REVIEW OF BUSINESS |
The principal activity of the company continued to be that of building restoration. |
The directors are satisfied with the sales performance in the year to 31 May 2021, and the achievement of a gross profit margin of 33.98% in a very competitive market. |
Operating costs have increased during the year and this, together with the increased gross margin results in a profit before tax of £2,191,959 (2020: profit of £1,373,899). |
There has been no additional funding requirement during the year as the company had maintained adequate reserves to support the business. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors constantly monitor the risks and uncertainties facing the company with particular reference to the exposure on liquidity and credit risks. They are confident that there are suitable policies in place and there are no material risks and uncertainties which have not been considered. |
The company uses various financial instruments which include cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, including liquidity and credit risk. The directors review and agree policies for managing each of these risks and are confident that there are suitable policies in place and there are no material risks which have not been considered. These policies have remained unchanged from previous years. |
Liquidity risk |
The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The company's policy throughout the year has been to achieve this objective through the day to day involvement of management in business decisions rather than through setting maximum or minimum liquidity ratios. |
COVID IMPACT |
In December 2020, the UK experienced a (partial) lockdown due to the seriousness of the coronavirus (COVID 19) pandemic. The directors performed an assessment on the company's ability to continue to trade as a going concern for the foreseeable future. |
In undertaking this assessment, the directors have given due consideration to the company's banking facilities, historical and current trading, together with the forward-looking projections. The company has prepared detailed cashflow forecasts and undertaken scenario modelling given the current COVID-19 pandemic. |
The company has significant financial resources and is in a strong position to deal with the possible economic impact of COVID-19. The situation is evolving, and it is not possible at this stage to determine with full certainty the impact on the company, its customers, employees and suppliers until the crisis ends. If there is a reduction in revenue due to an exceptional extended closure of customers, there are a range of steps the company can take to mitigate the impact. |
The directors have reviewed the cash flow forecasts and based on their best assessment believe the company will have sufficient financing in place to ensure cash flow requirements are satisfied and that there are no material uncertainties. As such, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2021 |
KEY PERFORMANCE INDICATORS |
Key Performance indicators |
The directors use a number of measures, both financial and non-financial to monitor and benchmark the performance of the company. They regard the following as the key financial indicators of performance: |
- Operating profit - measuring the profits generated by the company's operations. |
- Net cash flow from operating activities - measuring the performance in translating operating profit into cash flow through management of working capital and the monitoring of debtor days and stock levels. |
The key non-financial indicators are associated with the company's ability to maintain its existing customer and supplier base. |
BREXIT |
The business deals exclusively with UK based clients, and all staff and operatives are predominantly UK nationals. On this basis, the directors consider the business to be no more exposed to Brexit risks than any other similar UK SME business. |
FUTURE DEVELOPMENTS |
The directors will continue to grow and develop the business in the future but anticipate that business will be very competitive during the current year. |
POSITION OF THE COMPANY AT THE YEAR END |
The results for the year and the financial position at the year end were considered satisfactory by the directors. |
ON BEHALF OF THE BOARD: |
Director |
17 December 2021 |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2021 |
The directors present their report with the financial statements of the company for the year ended 31 May 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of building restoration. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 May 2021 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2020 to the date of this report. |
DISABLED EMPLOYEES |
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training, career development and promotion to disabled employees wherever appropriate. |
DISCLOSURE IN THE STRATEGIC REPORT |
Details of items required under Schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 are provided in the Strategic Report on pages 2 and 3. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2021 |
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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DBR (LONDON) LIMITED |
Opinion |
We have audited the financial statements of DBR (London) Limited (the 'company') for the year ended 31 May 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 May 2021 and of its profit 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 directors' 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 in the 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 this gives rise to a material misstatement in the financial statements themselves. 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DBR (LONDON) LIMITED |
Matters on which we are required to report by exception |
In the light of the 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 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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 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. |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- we identified the laws and regulations applicable to the company through discussions with directors and from our knowledge and experience of the construction industry; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment and health and safety legislation; |
Additionally, we assessed the susceptibility of the company's financial statements to material misstatement, including obtaining and understanding how fraud might occur by: |
- making enquires of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DBR (LONDON) LIMITED |
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. |
for and on behalf of |
Statutory Auditor |
Sterling House |
27 Hatchlands Road |
Redhill |
Surrey |
RH1 6RW |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,510,100 | 2,649,492 |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
2,192,817 | 1,373,915 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
BALANCE SHEET |
31 MAY 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
12 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2019 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2021 |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Capital repayments in year |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
2,960,892 |
Cash and cash equivalents at end of year | 2 | 4,035,477 | 3,722,046 |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MAY 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 858 | 16 |
Finance income | (7,123 | ) | (15,534 | ) |
2,194,028 | 1,371,194 |
(Increase)/decrease in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
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: |
Year ended 31 May 2021 |
31.5.21 | 1.6.20 |
£ | £ |
Cash and cash equivalents | 4,035,477 | 3,722,046 |
Year ended 31 May 2020 |
31.5.20 | 1.6.19 |
£ | £ |
Cash and cash equivalents | 3,722,046 | 2,960,892 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.6.20 | Cash flow | At 31.5.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,722,046 | 313,431 | 4,035,477 |
3,722,046 | 4,035,477 |
Debt |
Finance leases | - | (13,511 | ) | (13,511 | ) |
- | (13,511 | ) | (13,511 | ) |
Total | 3,722,046 | 299,920 | 4,021,966 |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2021 |
1. | STATUTORY INFORMATION |
DBR (London) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
Preparation of the financial statements requires management to make significant judgements and estimates. The only items in the financial statements where these judgements and estimates have been made is in the depreciation rate of tangible fixed assets and any bad debt provision in connection with trade debtors. |
Turnover and revenue recognition |
Turnover represents amounts receivable for building restoration, excluding discounts and value added tax. |
Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance in connection with its building restoration. It is measured at the fair value of the right to consideration, which represents amounts chargeable to customers, including expenses and disbursements but excluding value added tax. |
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. |
Tangible fixed assets |
Plant and machinery | - |
Office equipment and furniture | - |
Motor vehicles | - |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 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. |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2021 |
2. | ACCOUNTING POLICIES - continued |
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. |
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. |
Assets obtained under hire purchase contracts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Defined contribution pension plan |
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. |
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The funds.assets of the plan are held separately from the company in independently administered |
Financial instruments |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are losses relating to financial liabilities and are included in the Statement of Comprehensive Income. Finance presented as such in the Statement of Financial Position. Finance costs and gains or costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited directly to equity. |
Financial instruments that are derivatives are valued at each period end, and the movement in value is taken to the Statement of Comprehensive Income. |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2021 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
In preparing the financial statements the directors are required to assess the company's ability to continue to trade as a going concern for the foreseeable future. |
In undertaking this assessment, the directors have given due consideration to the company's banking facilities, historical and current trading, together with the forward-looking projections. The company has prepared detailed cashflow forecasts and undertaken scenario modelling given the current COVID-19 pandemic. |
The company has significant financial resources and is in a strong position to deal with the possible economic impact of COVID-19. The situation is evolving and it is not possible at this stage to determine with full certainty the impact on the company, its customers, employees and suppliers until the crisis ends. If there is a reduction in revenue due to an exceptional extended closure of certain customers, there are a range of steps the company can take to mitigate the impact. |
The directors have reviewed the cash flow forecasts and based on their best assessment therefore believe that the company will have sufficient financing in place to ensure cash flow requirements are satisfied and that there are no material uncertainties. As such, the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2021 |
2. | ACCOUNTING POLICIES - continued |
Borrowing costs |
All borrowing costs are recognised in the Statement of Comprehensive income in the year in which they are incurred. |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
Finance costs |
Finance costs are charged to the Statement of Comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised when approved by the shareholders at an annual general meeting. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
Debtors |
Short-term debtors are measured at the transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Creditors |
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure to settle the obligation, taking into account relevant risk and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the statement of Financial Position. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2021 |
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2021 | 2020 |
Office and management | 36 | 35 |
Production and sales | 40 | 38 |
2021 | 2020 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2021 | 2020 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2021 | 2020 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2021 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Interest on overdue tax |
7. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Tax on profit | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2020 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( |
) |
R&D claims prior years | - | (544,623 | ) |
Total tax charge/(credit) | 413,964 | (273,711 | ) |
8. | DIVIDENDS |
2021 | 2020 |
£ | £ |
Interim |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2021 |
9. | TANGIBLE FIXED ASSETS |
Office |
equipment |
Plant and | and | Motor |
machinery | furniture | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2020 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2021 |
DEPRECIATION |
At 1 June 2020 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2021 |
NET BOOK VALUE |
At 31 May 2021 |
At 31 May 2020 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Hire purchase contracts (see note 13) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 298,991 | 480,059 |
Other creditors |
Directors' current accounts | 1,650,000 | 1,650,000 |
Accruals and deferred income |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2021 |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Hire purchase contracts (see note 13) |
13. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary shares | £1 | 100,000 | 100,000 |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 June 2020 |
Profit for the year |
Dividends | ( |
) |
At 31 May 2021 |
16. | ULTIMATE PARENT COMPANY |
Consort Acquisitions Limited is regarded by the directors as being the company's ultimate parent company. |
The parent's registered office is Sterling House, 27 Hatchlands Road, Redhill, Surrey. RH1 6RW, UK. Copies of group accounts can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ. |
17. | 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. |
DBR (LONDON) LIMITED (REGISTERED NUMBER: 02519958) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2021 |
17. | RELATED PARTY DISCLOSURES - continued |
At 31 May 2021 the company was owed £75,855 (2020: £216,659) by DBR (Leadwork) Limited, a company in which Messrs's Attwood, Lucas and Henderson have an interest, and are directors, in respect of trading and loans. At 31 May 2021 the company owed DBR (Leadwork) Limited £142,008 (2020: £151,634) in respect of trading. During the year the company purchased goods to the value of £731,839 from DBR(Leadwork) Limited, and sold goods to this company to the value of £Nil. |
At 31 May 2021 the company was owed £23,099 (2020: £10,261) by DBR Conservation Limited, a company in which Messrs's Attwood and Lucas have an interest and are directors, in respect of trading. At 31 May 2021 the company owed DBR Conservation Limited £64,381 (2020: £148,159) in respect of trading. During the year the company purchased goods to the value of £377,299 from DBR Conservation Limited, and sold goods to this company to the value of £Nil. |
During the year DBR Conservation charged the company management charges amounting to £60,000, and management charges amounting to £60,000 were charged to DBR (Leadwork) Limited by the company. |