Delkia Limited - Period Ending 2022-12-31
Delkia Limited - Period Ending 2022-12-31
Registration number:
Delkia Limited
Contents
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Directors' Report |
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Accountants' Report |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Delkia Limited
Directors' Report for the Year Ended 31 December 2022
The directors present their report and the financial statements for the year ended 31 December 2022.
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activity of the company is systems integration - providing technological and engineering solutions for safety-related and mission-critical systems.
Business Review
The director presents an overview of the 2022 accounting period.
The closing accounting period resulted in record sales and profits for the company, ~£5.9m, with a net profit before tax of ~£553k (~9%), following significant investment for future growth.
The business continues to develop and invest into systems engineering and integration capability with technology services and products for high-integrity and mission-critical systems. These sectors are highly regulated such as clean energy (inc. nuclear), defence, maritime / naval and aerospace.
The business continues to grow at a fast but sustainable rate (101% growth against 2021 accounts) and increases market share year-on-year. In 2023 the company will achieve a milestone of attracting more than 85 experts in their field. The company has secured major projects in the nuclear sector for detailed design, manufacture, systems integration, test, and qualification. Additionally, £60m of new frameworks have been secured and succesful delivery of multiple ~£1m to £3m standalone projects for blue-chip clients. The business continues to support critical national infrastructure projects across its portfolio and are deemed an expert in their field in systems engineering, control, electrical and instrumentation for complex systems.
The Board and Directors continue to invest into its team and are excited about Delkia’s future.
Successes during this period include:
- Significant organic growth and major engineering contract wins
- Increasing team size and diversity
- Delkia awarded ‘Responsible Business 2022’, by Morgan Sindall Infrastructure
- Delkia awarded ‘Growing Business of the Year 2022’ by Britain’s Energy Coast Business Cluster 2022
- Developed Armed Forces veterans’ recruitment event
- Developed internal R&D funded programme
- Developed and occupied 3 UK sites with design and production expansion
- Developed IET apprentice and graduate programmes
- Invested heavily into socioeconomics and social value in areas of interest
- Created new intern programme and created sponsorship packages for PhD students
Delkia Limited
Directors' Report for the Year Ended 31 December 2022 (continued)
Principal Risks and Uncertainties
The business takes a risk-based approach and continues to assess its operations from a commercial, legal, and political perspective from the UK and overseas.
Risk surrounding the pandemic continue and this will be reviewed against government advice, allowing Delkia’s workforce to move more freely for operational needs across its various sites. The business has been resilient to the pandemic and growth of the business continues.
Brexit risks have been reviewed and these are not perceived as a major risk to the business.
Global chip shortages are impacting lead times which is causing prolongation across major projects. Delkia have mitigated this by appointing a strategy procurement and supply chain team distilling sustainability and resilience throughout its suppliers.
Future Direction
The business secured ~£5.4m new orders throughout 2022, supporting a longer-term and sustainable growth projection. The business continues to focus on its excellent operational delivery and is starting to secure larger packages of work, more latterly in its clean energy, aerospace, maritime and defence sectors. Outturn in 2023 is forecasting a projected revenue of ~£10.2m, which will transition the business from a small entity, with regards to Companies House reporting. The Board are comfortable with the sustained growth, and independent auditing is being planned for post 2023 accounts should this be required.
Delkia continue to focus on their forward strategy as one of the UK’s leading Systems Integrators for safety-related and mission-critical systems engineering. International export focus has already begun securing contracts in France, Sweden, and the US. The company continues to be successful towards its growth target of ~£20m by 2026.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved by the
.........................................
K Canfield
Director
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Delkia Limited
for the Year Ended 31 December 2022
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Delkia Limited for the year ended 31 December 2022 as set out on pages 4 to 14 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.
This report is made solely to the Board of Directors of Delkia Limited, as a body, in accordance with the terms of our engagement letter dated 25 January 2023. Our work has been undertaken solely to prepare for your approval the accounts of Delkia Limited and state those matters that we have agreed to state to the Board of Directors of Delkia Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Delkia Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Delkia Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Delkia Limited. You consider that Delkia Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Delkia Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
Chartered Accountants
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW
Delkia Limited
(Registration number: 07339803)
Balance Sheet as at 31 December 2022
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Note |
31 December 2022 |
31 December 2021 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Allotted, called up and fully paid share capital |
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Non-distributable reserve |
10,200 |
12,763 |
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Profit and loss account |
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Total equity |
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Delkia Limited
(Registration number: 07339803)
Balance Sheet as at 31 December 2022 (continued)
For the financial year ending 31 December 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
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The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
.........................................
K Canfield
Director
Delkia Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.
Government grants
Grants for the purpose of giving immediate financial support with no future related costs to be incurred
are recognised in the profit and loss account when the grant proceeds become receivable.
Other grants relating to revenue are recognised in the profit and loss account on a systematic basis over the periods in which the related costs are recognised for which the grant is intended to compensate.
Grants receivable in the period were £0 (2021 : £14,609) in relation to the Coronavirus Job Retention Scheme.
Delkia Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022 (continued)
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the 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.
Tangible assets
Tangible assets (excluding plant and equipment which is stated at valuation) are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Buildings |
15% reducing balance |
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Plant and equipment |
15% reducing balance |
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Motor vehicles |
20% reducing balance |
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Furniture and fittings |
25% reducing balance |
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Office equipment |
25% reducing balance |
Intangible assets
Separately acquired trademarks, patents and licences are shown at historical cost.
Trademarks, patents and licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, patents and licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Intellectual Property rights are carried at cost less accumulated amortisation and any accumulated impairment losses.
Delkia Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022 (continued)
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Trademarks, patents and licences |
over 5 years |
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Intellectual property |
shorter of the economic life and the period the right is legally enforceable |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for the sale of goods or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.
Delkia Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022 (continued)
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
In addition to the above persons employed, the company also utilised an average of 22 consultants (2021 - 12) during the period.
Delkia Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022 (continued)
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Intangible assets |
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Trademarks, patents and licences |
Intellectual property |
Total |
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Cost or valuation |
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At 1 January 2022 |
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At 31 December 2022 |
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Amortisation |
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At 1 January 2022 |
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Amortisation charge |
- |
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At 31 December 2022 |
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Carrying amount |
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At 31 December 2022 |
- |
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At 31 December 2021 |
- |
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Impairment
Delkia Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022 (continued)
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Tangible assets |
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Land and buildings |
Plant and equipment |
Furniture, fittings and office equipment |
Total |
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Cost or valuation |
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At 1 January 2022 |
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Additions |
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At 31 December 2022 |
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Depreciation |
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At 1 January 2022 |
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Charge for the year |
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At 31 December 2022 |
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Carrying amount |
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At 31 December 2022 |
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At 31 December 2021 |
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Revaluation
The fair value of the company's plant and machinery was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
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Debtors |
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31 December 2022 |
31 December 2021 |
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Trade debtors |
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Other debtors |
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Delkia Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022 (continued)
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Creditors |
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Note |
31 December 2022 |
31 December 2021 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Corporation tax liability |
37,734 |
9,872 |
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Other creditors |
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Due after one year |
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Loans and borrowings |
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Reserves |
A reconciliation of the opening and closing non-distributable reserve for the current year is as follows:
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Non-distributable reserve |
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Brought forward |
12,763 |
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Revaluation |
- |
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Other movement |
(2,578) |
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Deferred tax |
15 |
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Carried forward |
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Delkia Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022 (continued)
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Loans and borrowings |
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31 December 2022 |
31 December 2021 |
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Current loans and borrowings |
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Bank borrowings |
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Other borrowings |
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Current loans and borrowings includes the following liabilities, on which security has been given by the company:
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31 December 2022 |
31 December 2021 |
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Bank borrowings |
- |
9,527 |
Bank borrowings were previously secured by a debenture.
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31 December 2022 |
31 December 2021 |
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Non-current loans and borrowings |
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Bank borrowings |
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Other borrowings |
- |
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Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:
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31 December 2022 |
31 December 2021 |
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Bank borrowings |
- |
39,691 |
Bank borrowings were previously secured by a debenture.
Delkia Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 December 2022 (continued)
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Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
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Related party transactions |
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Transactions with directors |
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2022 |
At 1 January 2022 |
Advances |
Repayments |
Other payments |
Dividends credited |
Interest |
At 31 December 2022 |
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K Canfield |
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Loan |
- |
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( |
- |
(62,696) |
672 |
- |
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2021 |
At 1 November 2020 |
Advances |
Repayments |
Other payments |
Dividends credited |
Interest |
At 31 December 2021 |
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K Canfield |
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Loan |
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( |
- |
(73,347) |
818 |
- |
Directors' advances are repayable on demand.
Interest has been charged at a rate of 2.25% to 5 April 2021 and 2% thereafter on advances to directors.