Dalziel & Pow Design Consultants Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03994908 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 July 2021

for

Dalziel & Pow Design Consultants Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

Mr D Dalziel

Mr K Ware

Mr A Kean

Mr D R Wright

Mrs S L Fairhurst

Mr M King

Mr T Graveling

Mr R Bennett

Mr P J West

SECRETARY:

Camamile Limited

REGISTERED OFFICE:

5-8 Hardwick Street

London

EC1R 4RG

REGISTERED NUMBER:

03994908 (England and Wales)

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

The directors present their strategic report for the year ended 31 July 2021.

REVIEW OF BUSINESS

We encountered a very tough first half to the year due to the continuing negative global economic effects of the Covid 19 pandemic. In the second half of the year, market confidence became noticeably stronger which led to business ramping up significantly and this has continued into the current year.

The Directors continue to meet twice a week to discuss business continuity, including client accounts and management, new business opportunities, marketing, workload and operations, cash flow and other financial and business matters. This ensures we manage any potential risks or uncertainties that are encountered by the Group and agree measures to mitigate against them.

PRINCIPAL RISKS AND UNCERTAINTIES

Interest Risks and Liquidity Risks

The Group manages profits to fund growth, develop the business and maintain positive cash balances. Therefore, interest rate and liquidity risks are minimised.

Foreign Exchange Risk

The Group's preferred currency for all transactions is sterling. However, at times it is necessary to transact in other foreign currencies and this increases the risk of foreign exchange uncertainties. The Group monitors foreign exchange exposure on a regular basis and manages its accounts to maximise exchange rate benefit.

Credit Risk

The Group continuously reviews it credit risk with new and current clients. New clients, especially overseas clients, often have reduced credit terms with the requirement to make a payment on account to mitigate the Group's risk. We also regularly produce billing schedules to further minimise risk.

Client Satisfaction

We assess this on a direct one to one basis with the client and use feedback to improve the Group's client offer, match client expectations and retain existing clients. We also regularly carry out independent client surveys.

Key Performance Indicators

Financial and non-financial key performance summary indicators are reviewed formally by the Directors, in a monthly Board meeting, to measure performance against the business plan and budget, to ensure we can identify any risks or threats at the earliest possible opportunity and take the appropriate action.

ON BEHALF OF THE BOARD:

Mr K Ware - Director

17 January 2022

The directors present their report with the financial statements of the company for the year ended 31 July 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of design consultants.

DIVIDENDS

The total distribution of dividends for the year ended 31 July 2021 will be £350,000 (2020: £425,000).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2020 to the date of this report.

Mr D Dalziel

Mr K Ware

Mr A Kean

Mr D R Wright

Mrs S L Fairhurst

Mr M King

Mr T Graveling

Mr R Bennett

Mr P J West

Other changes in directors holding office are as follows:

Mrs K Dalziel - resigned 27 January 2021

CHARITABLE CONTRIBUTIONS

The Group is committed to its Corporate Social Responsibility programme and commits to staff gifting a workday per year to charity. During the year the company also made charitable donations totalling £715 (2020: £515).

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). 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.

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 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 company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

Mr K Ware - Director

17 January 2022

Opinion

We have audited the financial statements of Dalziel & Pow Design Consultants Limited (the 'company') for the year ended 31 July 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 July 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.

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 three, 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:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.

-

We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

-

Substantive procedures performed in accordance with the ISAs (UK).

-

Challenging assumptions and judgments made by management in its significant accounting estimates.

-

Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.

-

Assessing the extent of compliance with the relevant 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.

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.

Jon O'Hern FCA (Senior Statutory Auditor)

for and on behalf of Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

17 January 2022

TURNOVER

3

4,797,968

6,769,641

Cost of sales

1,241,411

2,692,944

GROSS PROFIT

3,556,557

4,076,697

Administrative expenses

3,462,653

4,561,759

93,904

(485,062

)

Other operating income

4

295,055

168,389

OPERATING PROFIT/(LOSS)

6

388,959

(316,673

)

Interest receivable and similar income

7

128

849

389,087

(315,824

)

Interest payable and similar expenses

8

407

-

PROFIT/(LOSS) BEFORE TAXATION

388,680

(315,824

)

Tax on profit/(loss)

9

118,601

(39,805

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

270,079

(276,019

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

270,079

(276,019

)

FIXED ASSETS

Intangible assets

11

8,077

11,773

Tangible assets

12

93,660

123,794

101,737

135,567

CURRENT ASSETS

Debtors

13

1,480,522

1,192,535

Cash at bank and in hand

1,168,042

1,617,173

2,648,564

2,809,708

CREDITORS

Amounts falling due within one year

14

1,980,272

2,083,642

NET CURRENT ASSETS

668,292

726,066

TOTAL ASSETS LESS CURRENT LIABILITIES

770,029

861,633

CREDITORS

Amounts falling due after more than one year

15

(239,583

)

(250,000

)

PROVISIONS FOR LIABILITIES

17

(11,419

)

(12,685

)

NET ASSETS

519,027

598,948

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

518,927

598,848

SHAREHOLDERS' FUNDS

519,027

598,948

The financial statements were approved by the Board of Directors and authorised for issue on 17 January 2022 and were signed on its behalf by:

Mr K Ware - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 August 2019

100

1,299,867

1,299,967

Changes in equity

Dividends

-

(425,000

)

(425,000

)

Total comprehensive income

-

(276,019

)

(276,019

)

Balance at 31 July 2020

100

598,848

598,948

Changes in equity

Dividends

-

(350,000

)

(350,000

)

Total comprehensive income

-

270,079

270,079

Balance at 31 July 2021

100

518,927

519,027

Cash flows from operating activities

Cash generated from operations

1

(5,578

)

997,702

Interest paid

(407

)

-

Tax paid

(88,220

)

(6,747

)

Net cash from operating activities

(94,205

)

990,955

Cash flows from investing activities

Purchase of intangible fixed assets

(3,166

)

(5,142

)

Purchase of tangible fixed assets

(17,160

)

(43,572

)

Sale of tangible fixed assets

15,272

12,746

Interest received

128

849

Net cash from investing activities

(4,926

)

(35,119

)

Cash flows from financing activities

Equity dividends paid

(350,000

)

(425,000

)

Net cash from financing activities

(350,000

)

(425,000

)

(Decrease)/increase in cash and cash equivalents

(449,131

)

530,836

Cash and cash equivalents at beginning of year

2

1,617,173

1,086,337

Cash and cash equivalents at end of year

2

1,168,042

1,617,173

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2021

2020

£

£

Profit/(loss) before taxation

388,680

(315,824

)

Depreciation charges

47,173

102,694

(Profit)/loss on disposal of fixed assets

(8,289

)

6,689

Finance costs

407

-

Finance income

(128

)

(849

)

427,843

(207,290

)

(Increase)/decrease in trade and other debtors

(287,988

)

1,090,188

(Decrease)/increase in trade and other creditors

(145,433

)

114,804

Cash generated from operations

(5,578

)

997,702

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 July 2021

31.7.21

1.8.20

£

£

Cash and cash equivalents

1,168,042

1,617,173

Year ended 31 July 2020

31.7.20

1.8.19

£

£

Cash and cash equivalents

1,617,173

1,086,337

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.8.20

Cash flow

At 31.7.21

£

£

£

Net cash

Cash at bank and in hand

1,617,173

(449,131

)

1,168,042

1,617,173

(449,131

)

1,168,042

Total

1,617,173

(449,131

)

1,168,042

1.	STATUTORY INFORMATION

Dalziel & Pow Design Consultants 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

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.

Turnover

Turnover represents invoiced sales in respect of fees for services rendered and direct costs recovered as agreed with each client, excluding VAT.

Revenue is recognised when a service has been completed in accordance with the terms of agreement with the client. Where the provision of a service remains incomplete at the end of a period, a proportion of the income pertaining to the level of the service performed is accrued and is part of the debtors balance.

Where clients have invoiced in advance for services to be delivered at a future date, the income is deferred and becomes part of the creditors balance.

Goodwill

Goodwill, which represents the excess of cost of acquisition of business over the value attributed to their net assets, is amortised through the profit and loss account by equal instalments over its estimated useful economic life of 20 years.

Patents and licences

Patents and licences are amortised over their estimated useful life of 5 years.

Tangible fixed assets

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

Short leasehold

-

over the lease term

Fixtures and fittings

-

25% on reducing balance

Computer equipment

-

33% on reducing balance

Government grants

Grants relating to the Coronavirus Job Retention Scheme are recognised in full in the period in which the associated salary, national insurance and pension costs were incurred.

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.

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 the profit and loss account as incurred.

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and profit (2020 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2021

2020

£

£

United Kingdom

2,642,073

3,285,897

Europe

1,423,260

1,498,202

Rest of the World

732,635

1,985,542

4,797,968

6,769,641

4.	OTHER OPERATING INCOME

2021

2020

£

£

Sundry receipts

17,794

1,613

Rents received

-

102,886

Government grants

277,261

63,890

295,055

168,389

During the year, the company received Coronavirus Job Retention Support grants amounting to £277,261 (2020: £63,890).

5.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

2,713,732

4,217,040

Social security costs

303,956

460,722

Other pension costs

332,406

454,655

3,350,094

5,132,417

The average number of employees during the year was as follows:

2021

2020

Directors

9

10

Designers

31

50

Administration

15

21

55

81

2021

2020

£

£

Directors' remuneration

1,036,364

1,196,915

Directors' pension contributions to money purchase schemes

141,781

175,376

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

9

9

Information regarding the highest paid director is as follows:

2021

2020

£

£

Emoluments etc

181,955

166,787

6.	OPERATING PROFIT/(LOSS)

The operating profit (2020 - operating loss) is stated after charging/(crediting):

2021

2020

£

£

Hire of plant and machinery

13,310

15,324

Depreciation - owned assets

40,311

57,678

(Profit)/loss on disposal of fixed assets

(8,289

)

6,689

Goodwill amortisation

-

37,784

Patents and licences amortisation

6,862

7,232

Auditors' remuneration

18,250

18,350

Auditors' remuneration for non audit work

22,024

18,998

Foreign exchange differences

15,703

7,597

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2021

2020

£

£

Interest receivable

128

849

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Bank loan interest

407

-

9.

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

119,867

(44,177

)

Deferred tax

(1,266

)

4,372

Tax on profit/(loss)

118,601

(39,805

)

UK corporation tax has been charged at 19% (2020 - 19%).

10.

DIVIDENDS

2021

2020

£

£

Interim

350,000

425,000

11.	INTANGIBLE FIXED ASSETS

Patents

and

Goodwill

licences

Totals

£

£

£

COST

At 1 August 2020

863,613

73,873

937,486

Additions

-

3,166

3,166

Disposals

(863,613

)

-

(863,613

)

At 31 July 2021

-

77,039

77,039

AMORTISATION

At 1 August 2020

863,613

62,100

925,713

Amortisation for year

-

6,862

6,862

Eliminated on disposal

(863,613

)

-

(863,613

)

At 31 July 2021

-

68,962

68,962

NET BOOK VALUE

At 31 July 2021

-

8,077

8,077

At 31 July 2020

-

11,773

11,773