Design Go Limited - Period Ending 2023-03-31

Design Go Limited

Contents

Company Information	1
Statement of Financial Position	2
Notes to the Financial Statements	3 to 10

Design Go Limited

Company Information

Directors

G Rogers J Rogers

Company secretary

G Rogers

Registered office

Unit 1 Mill Hill Industrial Estate Flower Lane London NW7 2HU

Auditor

Brebners Chartered Accountants & Statutory Auditor 130 Shaftesbury Avenue London W1D 5AR

Design Go Limited

Statement of Financial Position as at 31 March 2023

	Note	2023 £	2022 £
Fixed assets
Intangible assets	7	594,610	708,565
Tangible assets	8	522,803	657,597
		1,117,413	1,366,162
Current assets
Stocks	9	6,519,025	4,657,860
Debtors	10	11,584,259	8,970,472
Cash at bank and in hand		938,188	3,193,465
		19,041,472	16,821,797
Creditors: Amounts falling due within one year	11	(13,844,721)	(13,145,765)
Net current assets		5,196,751	3,676,032
Total assets less current liabilities		6,314,164	5,042,194
Creditors: Amounts falling due after more than one year	11	(2,125,000)	(2,625,000)
Net assets		4,189,164	2,417,194
Capital and reserves
Called up share capital		10,000	10,000
Retained earnings		4,179,164	2,407,194
Shareholders' funds		4,189,164	2,417,194

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 and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Statement of Income and Retained Earnings has been taken.

Approved and authorised by the Board on 26 September 2023 and signed on its behalf by:
 

.........................................

G Rogers

Director

Company registration number: 01477762

Design Go Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 1 Mill Hill Industrial Estate
Flower Lane
London
NW7 2HU

The principal activity of the company is the design, manufacture and distribution of travel accessories and related products.

2	Audit Report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 26 September 2023 was Martin Widdowson, who signed for and on behalf of Brebners.

3	Accounting policies

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 any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

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.

Summary of disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of D G International Holdings Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102:

(a) No cash flow statement has been presented for the company.
(b) No disclosure has been made of financial instruments measured at fair value through profit or loss.
(c) No disclosure has been given for the aggregate remuneration of key management personnel.

Design Go Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Going concern

The statement of financial position showed the company had net current assets at 31 March 2023 amounting to £5,196,751 and net assets amounting to £4,189,164, including cash at bank of £938,188. At this date an amount of £7,085,921 was due from group undertakings and an amount of £11,828,157 was due to group undertakings. The group remains committed to support the company and not to call for the net amount due until such time as the company has sufficient working capital.

The directors have considered the potential effect of the ongoing economic uncertainty in the United Kingdom and the directors' view is that the impact is manageable. The company's management accounts for the three month period to 30 June 2023 show continued profitability, and the cashflow forecasts demonstrate that the company has sufficient working capital for a period of at least 12 months from the date of approval of the financial statements.

After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

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 value added tax, returns, rebates and discounts.

Turnover is recognised when products are delivered to customers.

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in other income in the same period as the related expenditure.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a charge 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.

Design Go Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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 are stated in the statement of financial position 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:

Asset class	Depreciation method and rate
Leasehold improvements	33% on cost
Plant and equipment	15% to 33% reducing balance
Furniture, fittings and equipment	20% reducing balance and 33% on cost
Motor vehicles	25% reducing balance

Intangible assets

Separately acquired trademarks and patents are shown at historical cost.

Trademarks, patents, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, patents, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

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:

Asset class	Amortisation method and rate
Trademarks, patents and licences	10 years straight line
Software Development	3 years straight line

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.

Design Go Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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.

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 income statement 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.

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.

4	Staff numbers

The average number of persons employed by the company during the year was 34 (2022 - 32).

5	Auditor's remuneration

	2023 £	2022 £
Audit of the financial statements	26,000	22,500

 

Design Go Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

6	Other operating income

The analysis of the company's other operating income for the year is as follows:

	2023  £	2022  £
Government grants	-	223,092

7	Intangible assets

	Trademarks, patents and licenses  £	Internally generated software development costs  £	Total £
Cost or valuation
At 1 April 2022	2,240,531	595,627	2,836,158
Additions acquired separately	69,411	-	69,411
At 31 March 2023	2,309,942	595,627	2,905,569
Amortisation
At 1 April 2022	1,536,575	591,018	2,127,593
Amortisation charge	179,840	3,526	183,366
At 31 March 2023	1,716,415	594,544	2,310,959
Carrying amount
At 31 March 2023	593,527	1,083	594,610
At 31 March 2022	703,956	4,609	708,565

Design Go Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

8	Tangible assets

	Leasehold Improvements £	Furniture, fittings and equipment  £	Motor vehicles  £	Plant and Equipment £	Total £
Cost or valuation
At 1 April 2022	29,956	1,537,913	25,438	3,281,775	4,875,082
Additions	-	7,900	-	23,848	31,748
Disposals	(29,956)	(934,301)	-	(617,017)	(1,581,274)
At 31 March 2023	-	611,512	25,438	2,688,606	3,325,556
Depreciation
At 1 April 2022	29,956	1,430,868	20,910	2,735,751	4,217,485
Charge for the year	-	23,760	1,132	95,234	120,126
Eliminated on disposal	(29,956)	(907,597)	-	(597,305)	(1,534,858)
At 31 March 2023	-	547,031	22,042	2,233,680	2,802,753
Carrying amount
At 31 March 2023	-	64,481	3,396	454,926	522,803
At 31 March 2022	-	107,045	4,528	546,024	657,597

9

Stocks

	2023 £	2022 £
Stock	6,519,025	4,657,860

10

Debtors

	2023 £	2022 £
Trade debtors	4,125,730	2,897,062
Amounts owed by group undertakings	7,110,906	4,908,119
Other debtors	347,623	1,165,291
	11,584,259	8,970,472

Other debtors includes an amount of £31,711 (2022: £30,432) recoverable in greater than one year.

Design Go Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

11

Creditors

Creditors: amounts falling due within one year

	Note	2023 £	2022 £
Loans and borrowings	12	517,352	375,000
Trade creditors		951,381	777,548
Amounts owed to group undertakings		11,812,954	11,246,487
Taxation and social security		310,842	515,341
Other creditors		252,192	231,389
		13,844,721	13,145,765

Creditors: amounts falling due after more than one year

	Note	2023 £	2022 £
Loans and borrowings	12	2,125,000	2,625,000

12	Loans and borrowings

	2023 £	2022 £
Current loans and borrowings
Bank loans	517,352	375,000

	2023 £	2022 £
Non-current loans and borrowings
Bank loans	2,125,000	2,625,000

The bank loans are secured by a fixed and floating charge over the assets and undertakings of the company.

Bank loans and overdrafts after five years

Included in loans and borrowings is an amount of £125,000 (2022: £625,000) due after more than five years.

13	Financial commitments, guarantees and contingencies

Amounts not provided for in the statement of financial position

The total amount of financial commitments not included in the statement of financial position is £6,180 (2022: £5,924).

The company has guaranteed the bank borrowings of other group undertakings. At 31 March 2023 an amount of £Nil is outstanding and no liability is expected to crystallise. This guarantee is supported by a fixed and floating charge over the assets and undertakings of the company.

Design Go Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

14	Related party transactions

In accordance with FRS 102 paragraph 1AC.35 exemption is taken not to disclose transactions in the year or amounts falling due between wholly owned group undertakings.

15	Parent and ultimate parent undertaking

The company's immediate parent is D G International Holdings Limited which is the company which heads the smallest group preparing group accounts including the results of the company.

The registered address of D G International Holdings Limited is Unit 1 Mill Hill Industrial Estate, Flower Lane, London, NW7 2HU