Dints International Ltd - Limited company accounts 16.3

REGISTERED NUMBER: 06075058 (England and Wales)

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2017

FOR

DINTS INTERNATIONAL LTD

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTORS:

G S De Mowbray

N J Goodridge

R J Shardlow

F M G Tucker

G Buck

REGISTERED OFFICE:

Second Floor

Windsor House

40/41 Great Castle Street

London

W1W 8LU

REGISTERED NUMBER:

06075058 (England and Wales)

AUDITORS:

Jamieson Stone LLP

Windsor House

40/41 Great Castle Street

London

W1W 8LU

The directors present their report with the financial statements of the company for the year ended 31 May 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the international procurement and supply of

industrial plant and equipment and related spare parts.

REVIEW OF BUSINESS

Business has grown significantly over the last financial year, resulting in annual turnover reaching £10.9 million. The

result has been achieved by the commencement during the year of the first, long-term contract won under the new

customer proposition that Dints has been developing since 2014. This has been complemented by growth in Dints'

existing parts sourcing and supply business.

DIRECTORS

G S De Mowbray has held office during the whole of the period from 1 June 2016 to the date of this report.

Other changes in directors holding office are as follows:

P De Mowbray - resigned 29 November 2016

N J Goodridge - appointed 29 November 2016

R J Shardlow - appointed 29 November 2016

F M G Tucker - appointed 29 November 2016

G Buck - appointed 11 May 2017

PRINCIPAL RISKS AND UNCERTAINTIES

Improved commodity prices and a higher demand for gold and other metals are starting to drive higher demand from our

major clients who are still putting significant focus on their profitability & liquidity. Greater investment by our clients in

machinery and increased expenditure on parts is having the impact of driving revenue growth at Dints. Innovation at

Dints has resulted in a new suite of offerings that has seen the development of a large pipeline of opportunities. Due to

these factors, the company continuously needs to balance growth opportunities with short-term fiscal imperatives. The

Company continues to insure all its credit exports up to 90% of invoiced amounts and uses facilities of invoice

discounting and trade finance to maintain payment cycles with its suppliers. The Company is continuously working on

its sales and marketing campaigns in order to further expand its customer and sector base and trying to broaden its

supplier lists to achieve more competitive pricing and better payment terms. In addition to this, delivering financing

solutions with Export Credit Agencies and independent financiers is key in the delivery of these solutions. It should be

noted that the current risks in the market provide significant opportunities for the Company.

FUTURE DEVELOPMENTS

The Company has executed the first, long term contract under its newly developed outsourced supply chain model. In

May 2015, the Company tendered for its first contract under this new initiative which it subsequently won in December

2015. On 8th June 2016 an $8m facility with Investec and UK Export Finance was signed, which has been subsequently

increased to $10m. The focus of this new model is to optimise the supply chains of mining companies and contractors to

reduce costs and increase efficiency. The continued development of the IT system is the backbone to this. Some aspects

of the system is being utilised on this first contract and further development will enable the scaling of this model which

requires further innovation and investment. The full implementation of the new model and supporting IT infrastructure

will enable the Company to achieve significant growth with its multiple unique selling propositions and management is

confident of achieving this target.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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;

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.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small

companies.

ON BEHALF OF THE BOARD:

G S De Mowbray - Director

19 September 2017

We have audited the financial statements of Dints International Ltd for the year ended 31 May 2017 on pages six to

fifteen. The financial reporting framework that has been applied in their preparation is applicable law and United

Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial

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

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.

Respective responsibilities of directors and auditors

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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Report of the Directors to identify material inconsistencies with the audited financial

statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent

with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 May 2017 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the Report of the

Directors for the financial year for which the financial statements are prepared is consistent with the financial statements,

and has been prepared in accordance with applicable legal requirements. In the light of the knowledge and understanding

of the company and its environment, we have not identified any material misstatements in the Report of the Directors.

Matters on which we are required to report by exception

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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Michael Stone (Senior Statutory Auditor)

for and on behalf of Jamieson Stone LLP

Windsor House

40/41 Great Castle Street

London

W1W 8LU

19 September 2017

TURNOVER

10,894,939

5,183,695

Cost of sales

(8,479,506

)

(3,923,625

)

GROSS PROFIT

2,415,433

1,260,070

Administrative expenses

(1,578,055

)

(991,441

)

837,378

268,629

Other operating income

(249,626

)

85,281

OPERATING PROFIT

4

587,752

353,910

Interest payable and similar expenses

(436,678

)

(128,794

)

PROFIT BEFORE TAXATION

151,074

225,116

Tax on profit

5

(54,669

)

(16,890

)

PROFIT FOR THE FINANCIAL YEAR

96,405

208,226

FIXED ASSETS

Intangible assets

6

432,612

496,489

Tangible assets

7

72,971

95,321

505,583

591,810

CURRENT ASSETS

Stocks

8

1,711,948

654,239

Debtors

9

1,215,443

1,717,876

Cash in hand

154,883

148,570

3,082,274

2,520,685

CREDITORS

Amounts falling due within one year

10

(2,542,393

)

(2,295,102

)

NET CURRENT ASSETS

539,881

225,583

TOTAL ASSETS LESS CURRENT LIABILITIES

1,045,464

817,393

CREDITORS

Amounts falling due after more than one year

11

-

(306,850

)

PROVISIONS FOR LIABILITIES

12

(8,999

)

(12,333

)

NET ASSETS

1,036,465

498,210

CAPITAL AND RESERVES

Called up share capital

13

80,703

64,563

Share premium

14

426,100

390

Retained earnings

14

529,662

433,257

SHAREHOLDERS' FUNDS

1,036,465

498,210

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 19 September 2017 and were signed on its behalf by:

G S De Mowbray - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 June 2015

64,563

225,031

390

289,984

Changes in equity

Total comprehensive income

-

208,226

-

208,226

Balance at 31 May 2016

64,563

433,257

390

498,210

Changes in equity

Issue of share capital

16,140

-

425,710

441,850

Total comprehensive income

-

96,405

-

96,405

Balance at 31 May 2017

80,703

529,662

426,100

1,036,465

Cash flows from operating activities

Cash generated from operations

1

450,319

338,442

Interest paid

(436,678

)

(128,794

)

Tax paid

(13,672

)

(20,649

)

Net cash from operating activities

(31

)

188,999

Cash flows from investing activities

Purchase of intangible fixed assets

(52,769

)

(286,496

)

Purchase of tangible fixed assets

(30,759

)

(50,374

)

Net cash from investing activities

(83,528

)

(336,870

)

Cash flows from financing activities

Loan repayments in year

(46,200

)

(19,800

)

Capital repayments in year

-

(26,036

)

Amount introduced by directors

1,072

310,641

Amount withdrawn by directors

(306,850

)

-

Share issue

441,850

-

Net cash from financing activities

89,872

264,805

Increase in cash and cash equivalents

6,313

116,934

Cash and cash equivalents at beginning of year

2

148,570

31,636

Cash and cash equivalents at end of year

2

154,883

148,570

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2017

2016

£

£

Profit before taxation

151,074

225,116

Depreciation charges

169,755

122,930

Finance costs

436,678

128,794

757,507

476,840

Increase in stocks

(1,057,709

)

(580,619

)

Decrease/(increase) in trade and other debtors

501,361

(170,761

)

Increase in trade and other creditors

249,160

612,982

Cash generated from operations

450,319

338,442

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 2017

31.5.17

1.6.16

£

£

Cash and cash equivalents

154,883

148,570

Year ended 31 May 2016

31.5.16

1.6.15

£

£

Cash and cash equivalents

148,570

31,636

1.	STATUTORY INFORMATION

Dints International Ltd 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 the provisions of Section 1A "Small Entities" of 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.

Turnover

Turnover is the total amount receivable by the company excluding value added tax, in the ordinary course of its

business for goods supplied and services provided.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Software IP & Development is being amortised evenly over its estimated useful life of nil years.

Development expenditure

The intangible fixed asset relates to a proportion of staff time spent on a website development project. The

website facilitates the self-placing of orders by customers on real-time bases from remote locations. No

amortisation is charged in the year of capitalisation. The expected useful economic life of the asset, over which

the value is being amortised, has been estimated by management to be 4.5 years from the balance sheet date. No

adjustment has been made to recognise these as deemed costs on transition to FRS102.

Tangible fixed assets and depreciation

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

Fixture & fittings

-

25% on cost

Office equipment

-

25% on cost

Computer equipment

-

33% on cost

The computer equipment class of assets represents external costs relating to the same website development as the

capitalised development expenditure. No depreciation is incurred in the year of capitalisation as is consistent

with the amortisation policy of the associated intangible asset.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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

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.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

567,871

307,392

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

2017

2016

Office and management

6

6

Production and sales

6

6

12

12

4.	OPERATING PROFIT

The operating profit is stated after charging:

2017

2016

£

£

Depreciation - owned assets

53,109

64,255

Software IP & Development amortisation

116,646

58,675

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2017

2016

£

£

Current tax:

UK corporation tax

58,003

18,188

Deferred tax

(3,334

)

(1,298

)

Tax on profit

54,669

16,890

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

2017

2016

£

£

Profit before tax

151,074

225,116

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2016 - 20%)

30,215

45,023

Effects of:

Expenses not deductible for tax purposes

1,423

10

Depreciation in excess of capital allowances

26,365

11,188

Utilisation of tax losses

-

(1

)

Research & development expenditure

-

(38,032

)

Movement in deferred tax provision

(3,334

)

(1,298

)

Total tax charge

54,669

16,890

6.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 June 2016

555,164

Additions

52,769

At 31 May 2017

607,933

AMORTISATION

At 1 June 2016

58,675

Charge for year

116,646

At 31 May 2017

175,321

NET BOOK VALUE

At 31 May 2017

432,612

At 31 May 2016

496,489

7.	TANGIBLE FIXED ASSETS

Fixture &

Office

Computer

fittings

equipment

equipment

Totals

£

£

£

£

COST

At 1 June 2016

11,229

27,184

222,601

261,014

Additions

-

23,994

6,765

30,759

At 31 May 2017

11,229

51,178

229,366

291,773

DEPRECIATION

At 1 June 2016

10,257

20,879

134,557

165,693

Charge for year

859

5,474

46,776

53,109

At 31 May 2017

11,116

26,353

181,333

218,802

NET BOOK VALUE

At 31 May 2017

113

24,825

48,033

72,971

At 31 May 2016

972

6,305

88,044

95,321

8.

STOCKS

2017

2016

£

£

Finished goods

1,711,948

654,239

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

1,050,268

885,288

Directors' current accounts

-

1,072

VAT

66,841

23,893

Prepayments and accrued income

98,334

807,623

1,215,443

1,717,876

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Other loans

-

46,200

Trade creditors

246,582

1,139,154

Corporation tax

44,331

-

Social security and other taxes

17,167

45,257

Other creditors

2,076,333

1,040,143

Accruals and deferred income

157,980

24,348

2,542,393

2,295,102

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2017

2016

£

£

Directors' loan accounts

-

306,850

12.	PROVISIONS FOR LIABILITIES

2017

2016

£

£

Deferred tax

8,999

12,333

Deferred

tax

£

Balance at 1 June 2016

12,333

Credit to Statement of Comprehensive Income during year

(3,334

)

Balance at 31 May 2017

8,999

Deferred tax provision arose in respect of accelerated capital allowances.

13.	CALLED UP SHARE CAPITAL

Allotted and issued:

Number:

Class:

Nominal

2017

2016

value:

£

£

80,703

Share capital

£1

80,703

64,563

16,140 Ordinary shares of £1 were issued during the year for cash of £ 441,850 .

14.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 June 2016

433,257

390

433,647

Profit for the year

96,405

96,405

Cash share issue

-

425,710

425,710

At 31 May 2017

529,662

426,100

955,762

15.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 May 2017 and

31 May 2016:

2017

2016

£

£

G S De Mowbray

Balance outstanding at start of year

1,073

4,863

Amounts advanced

1,171

1,073

Amounts repaid

(2,244

)

(4,863

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

1,073