| D & K Europe Limited |
| Notes to the Accounts |
| for the year ended 30 June 2017 |
|
| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Going concern |
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The financial statements are prepared on a going concern basis as the ultimate parent undertaking has agreed to provide financial support for the foreseeable future and in particular for a period of at least twelve months following the date of approval of these financial statements. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the work. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows: |
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Buildings |
4% straight line |
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Plant and machinery |
20% - 33.33% straight line |
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Motor vehicles |
25% reducing balance |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. Stock is valued after making due allowance for obsolete and slow-moving items. Cost includes direct costs and an appropriate proportion of fixed and variable overheads. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. 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, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Operating leases |
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Rentals paid under operating leases are charged to income on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Audit information |
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The audit report is unqualified. |
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Emphasis of Matter paragraph regarding Going Concern: |
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In forming our opinion on the financial statements, which is not qualified, we have considered the adequacy of the disclosure made in note 1 to the financial statements which states that the financial statements have been prepared on the going concern basis as the parent company has pledged its willingness and ability to financially support the company for the foreseeable future, and in particular for a period of at least twelve months from the date of approval of these financial statements. |
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Senior statutory auditor: |
Geoffrey Mills |
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Firm: |
Mills Pyatt Limited |
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Date of audit report: |
12 September 2017 |
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| 3 |
Employees |
2017 |
|
2016 |
| Number |
Number |
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Average number of persons employed by the company |
20 |
|
21 |
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| 4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery |
|
Motor vehicles |
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Total |
| £ |
£ |
£ |
£ |
|
Cost |
|
At 1 July 2016 |
- |
|
383,354 |
|
60,544 |
|
443,898 |
|
Additions |
740,000 |
|
862 |
|
- |
|
740,862 |
|
Disposals |
- |
|
(10,513) |
|
- |
|
(10,513) |
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At 30 June 2017 |
740,000 |
|
373,703 |
|
60,544 |
|
1,174,247 |
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Depreciation |
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At 1 July 2016 |
- |
|
374,091 |
|
19,642 |
|
393,733 |
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Charge for the year |
4,000 |
|
4,112 |
|
10,226 |
|
18,338 |
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On disposals |
- |
|
(10,513) |
|
- |
|
(10,513) |
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At 30 June 2017 |
4,000 |
|
367,690 |
|
29,868 |
|
401,558 |
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Net book value |
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At 30 June 2017 |
736,000 |
|
6,013 |
|
30,676 |
|
772,689 |
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At 30 June 2016 |
- |
|
9,263 |
|
40,902 |
|
50,165 |
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|
| 5 |
Investments |
| Investments in |
| subsidiary |
| undertakings |
| £ |
|
Cost |
|
At 1 July 2016 |
500,333 |
|
Disposals |
(500,333) |
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At 30 June 2017 |
- |
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| 6 |
Debtors |
2017 |
|
2016 |
| £ |
£ |
|
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Trade debtors |
999,344 |
|
1,158,207 |
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Amounts owed by group undertakings |
|
6,997 |
|
- |
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Other debtors |
10,862 |
|
8,374 |
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|
|
1,017,203 |
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1,166,581 |
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The company utilises a sales ledger financing facility. Gross trade debts assigned to the finance provider at the year end amounted to £224,299 (2016 £276,079). |
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| 7 |
Creditors: amounts falling due within one year |
2017 |
|
2016 |
| £ |
£ |
|
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Bank borrowings (secured) |
180,759 |
|
208,412 |
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Trade creditors |
287,438 |
|
399,355 |
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Amounts owed to group undertakings |
|
2,942,994 |
|
3,162,375 |
|
Other taxes and social security costs |
26,301 |
|
23,961 |
|
5% Loan noted dated 3rd April 2006 (unsecured) |
210,441 |
|
204,041 |
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Other creditors |
20,266 |
|
25,570 |
|
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|
|
|
|
3,668,199 |
|
4,023,714 |
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The company has entered into a sales ledger financing agreement with Barclays Bank Plc under which the company has assigned notifiable trade debts to the bank. At the end of the year the company owed Barclays Bank Plc the sum of £180,759 (2016 £208,412) being advances made against the assigned approved trade debts. |
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| 8 |
Secured creditors |
2017 |
|
2016 |
| £ |
£ |
|
Creditors include: |
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Secured bank borrowings |
180,759 |
|
208,412 |
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Sales ledger financing borrowings are secured on the assigned trade debts. |
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| 9 |
Pension commitments |
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The company has no pension commitments other than to settle monthly payroll pension contributions, normally payable in the subsequent month. |
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| 10 |
Other financial commitments |
2017 |
|
2016 |
| £ |
£ |
|
|
Total future minimum payments under non-cancellable operating leases |
|
36,978 |
|
52,593 |
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| 11 |
Contingent liabilities |
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The company has entered into fixed and floating charges in favour of Barclays Bank Plc to secure finance on the company. |
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| 12 |
Related party transactions |
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The company has taken advantage of the exemption provisions under paragraph 33.1A of FRS102 from disclosing transactions with wholly owned group companies. |
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| 13 |
Controlling party |
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The company is a wholly owned subsidiary of D & K Group Inc., incorporated in U.S.A. The parent undertaking of the largest and smallest group for which consolidated accounts are prepared is D & K Group Inc. Copies of these consolidated accounts can be obtained from D & K Group Inc., 1795 Commerce Drive, Elk Grove Village, Illinois 60007, U.S.A. The ultimate controller is K R Singer. |
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| 14 |
Other information |
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D & K Europe Limited is a private company limited by shares and incorporated in England. Its registered office is: |
|
38-39 Crossgate Road |
|
Park Farm Industrial Estate |
|
Redditch |
|
Worcestershire |
|
B98 7SN |
