Company registration number 01102027 (England and Wales)
DAWBARN & SONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
Whitings LLP
Chartered Accountants
12/13 The Crescent
Wisbech
Cambridgeshire
PE13 1EH
DAWBARN & SONS LIMITED
COMPANY INFORMATION
Directors
Mr PJ Cranmer
(Appointed 30 September 2022)
Mr C Heminover
(Appointed 30 September 2022)
Mr RA Standen
(Appointed 30 September 2022)
Company number
01102027
Registered office
Harecroft Road
Wisbech
Cambridgeshire
PE13 1RL
Auditor
Whitings LLP
12/13 The Crescent
Wisbech
Cambridgeshire
PE13 1EH
DAWBARN & SONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9 - 10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
DAWBARN & SONS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 1 -
The directors present the strategic report for the period ended 29 September 2022.
Fair review of the business
The Directors are pleased to report that the results for the period ended 29 September 2022 are extremely strong
despite the challenges facing the business as a result of various macro-economic factors such as inflation,
increased direct costs and operational disruption faced as a result of the COVID-19 pandemic.
The company were acquired by the Shur-Co UK Group 30 September 2022, as a result of this consolidation it is hoped that synergies can be realised, leading to more efficient operating practices which will ensure that customer demand continues to be met whilst expanding the company's presence in the market.
Principal risks and uncertainties
Credit Risk - The company's main financial assets are trade receivables, intercompany loans, stock and cash and bank balances. Those assets represent the company's main exposure to credit risk, which is a risk that a counterparty will fail to discharge its obligations, resulting in financial loss to the company. Whilst the company does provide goods and services to many large customers it is not reliant on any of these to continue its operations, with this in mind the Directors believe that credit risk is both limited and mitigated.
Competitive Risk - the company operates in a highly competitive industry and faces competition from a number
of sources. This competition may lead to pricing pressure which could result in squeezed profit margins and
potential loss of business to other market players. The Directors continually monitor this risk, looking at ways
which it can differentiate itself from competitors and continue to assert its strong position in the market.
Regulation Risk - the company operates in an industry which is subject to numerous laws and regulations covering
a wide range of matters including health & safety, employment and other operating issues. The company is
continually ensuring that the compliance demands of these regulatory factors are met and the Directors,
supported by colleagues within the business, have ensured that the policies and culture in relation to this are
well communicated to all employees.
Finance Risk - the company funded its operations for the period ended 29 September 2022 through a combination of retained profits, internally generated cash, bank loans and asset-backed finance arrangements. During the acquisition by the Shur-Co UK Group the bank loans and asset-backed finance arrangements were repaid in full. The Directors continuously monitor the financial health and liquidity of the business and look to utilise various methods of funding to the betterment of the business.
Economic Risk - the company operates in an industry which can be susceptible to adverse economic conditions
through decreased business activity, especially in times of recession. Although the Directors acknowledge this
risk, the core offering of the company is well diversified to combat this, with customers hailing from a range of
industries. The directors are aware of the current conflict between the Ukraine and Russia and the impact this
may have on the global supply chain and inflation going forwards, the Directors continue to monitor the situation
closely.
Development and performance
The Directors, with the assistance of the Shur-Co UK Group, will continue to look for opportunities to grow its customer base and further improve ongoing financial performance, although it is noted that there are many challenges facing the business including continued spiralling inflation which will affect the cost base of the business for the foreseeable future.
DAWBARN & SONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 2 -
Key performance indicators
The Directors considered the company’s key performance indicators to be turnover, gross profit, gross margin and
operating profit.
Turnover decreased from £8,837,857 to £5,090,518.
Gross profit decreased from £2,399,880 to £1,343,558.
Gross margin decreased from 27.2% to 26.4%.
Operating profit increased from £343,398 to £840,541.
It should be noted that the results for the period ended 29 September 2022 are for a 6 month period.
Mr RA Standen
Director
18 July 2023
DAWBARN & SONS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 3 -
The directors present their annual report and financial statements for the period ended 29 September 2022.
Principal activities
The principal activity of the company continued to be that of the manufacture and distribution of sheeting systems.
Results and dividends
The results for the period are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr H Harrington Deceased
(Resigned 30 September 2022)
Mr B W Harrington
(Resigned 30 September 2022)
Mrs J M Harrington
(Resigned 30 September 2022)
Mr S Timms
(Resigned 30 September 2022)
Mr PJ Cranmer
(Appointed 30 September 2022)
Mr C Heminover
(Appointed 30 September 2022)
Mr RA Standen
(Appointed 30 September 2022)
Post reporting date events
On 30 September 2022 the entire share capital of the company was acquired by Shur-Co Holdings Limited.
Auditor
The auditor, Whitings LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr RA Standen
Director
18 July 2023
DAWBARN & SONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 4 -
The directors are responsible for preparing the annual report 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.
DAWBARN & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DAWBARN & SONS LIMITED
- 5 -
We have audited the financial statements of Dawbarn & Sons Limited (the 'company') for the period ended 29 September 2022 which comprise the profit and loss account, the balance sheet and notes to the financial statements, including 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:
give a true and fair view of the state of the company's affairs as at 29 September 2022 and of its profit for the period 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 qualified opinion
We were appointed as the company’s auditors subsequent to the year end and were therefore unable to observe the physical counting of stocks as at 29 September 2022 nor 31 March 2022 for the comparative period. We were unable to satisfy ourselves by alternative means concerning stock quantities of £1,198,012 held at 29 September 2022 or £1,245,134 held at 31 March 2022 by using other audit procedures. Consequently we were unable to determine whether any adjustment to these amounts were necessary.
We conducted our audit procedures in accordance with International Standards of 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 United Kingdom, including the Financial Reporting Councils 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 qualified opinion.
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.
The prior period financial statements were not audited due to the company previously being entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
DAWBARN & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DAWBARN & SONS LIMITED
- 6 -
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
• the information given in the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
• the directors' report has 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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
We have nothing to report in respect of the following matters in relation to which 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.
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 in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 is 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.
DAWBARN & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DAWBARN & SONS LIMITED
- 7 -
Auditor's 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 an auditor's report 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.
Enquiry of management around actual and potential litigation and claims;
Reviewing financial statement disclosures and testing supporting documentation to assess compliance with applicable laws and regulations; and
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, and reviewing accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report 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.
Ben Beech ACA
Senior Statutory Auditor
For and on behalf of Whitings LLP
20 July 2023
Chartered Accountants
Statutory Auditor
12/13 The Crescent
Wisbech
Cambridgeshire
PE13 1EH
DAWBARN & SONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 8 -
Period
Year
ended
ended
29 September
31 March
2022
2022
Notes
£
£
Turnover
3
5,090,518
8,837,857
Cost of sales
(3,746,960)
(6,437,977)
Gross profit
1,343,558
2,399,880
Administrative expenses
(503,017)
(2,081,745)
Other operating income
25,263
Operating profit
4
840,541
343,398
Interest payable and similar expenses
8
(34,484)
(19,246)
Profit before taxation
806,057
324,152
Tax on profit
9
(127,163)
(44,507)
Profit for the financial period
678,894
279,645
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DAWBARN & SONS LIMITED
BALANCE SHEET
AS AT
29 SEPTEMBER 2022
29 September 2022
- 9 -
2022
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
333,039
2,230,458
Current assets
Stocks
11
1,198,012
1,245,134
Debtors
12
4,006,127
1,812,220
Cash at bank and in hand
13
304,243
424,121
5,508,382
3,481,475
Creditors: amounts falling due within one year
14
(1,975,950)
(1,852,603)
Net current assets
3,532,432
1,628,872
Total assets less current liabilities
3,865,471
3,859,330
Creditors: amounts falling due after more than one year
15
(661,746)
Provisions for liabilities
Deferred tax liability
18
56,606
67,513
(56,606)
(67,513)
Net assets
3,808,865
3,130,071
Capital and reserves
Called up share capital
20
1,000
1,100
Profit and loss reserves
3,807,865
3,128,971
Total equity
3,808,865
3,130,071
DAWBARN & SONS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
29 SEPTEMBER 2022
29 September 2022
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 18 July 2023 and are signed on its behalf by:
Mr RA Standen
Director
Company Registration No. 01102027
DAWBARN & SONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
1,100
2,849,326
2,850,426
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
279,645
279,645
Balance at 31 March 2022
1,100
3,128,971
3,130,071
Period ended 29 September 2022:
Profit and total comprehensive income for the period
-
678,894
678,894
Redemption of shares
20
(100)
(100)
Balance at 29 September 2022
1,000
3,807,865
3,808,865
DAWBARN & SONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 12 -
2022
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(1,687,921)
(419,656)
Interest paid
(34,484)
(19,246)
Income taxes refunded/(paid)
1
(10,824)
Net cash outflow from operating activities
(1,722,404)
(449,726)
Investing activities
Purchase of tangible fixed assets
(29,620)
(746,919)
Proceeds from disposal of tangible fixed assets
2,400,000
2,500
Net cash generated from/(used in) investing activities
2,370,380
(744,419)
Financing activities
Redemption of shares
(100)
Repayment of bank loans
(750,736)
445,872
Payment of finance leases obligations
(17,018)
(13,445)
Net cash (used in)/generated from financing activities
(767,854)
432,427
Net decrease in cash and cash equivalents
(119,878)
(761,718)
Cash and cash equivalents at beginning of period
424,121
1,185,839
Cash and cash equivalents at end of period
304,243
424,121
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 13 -
1
Accounting policies
Company information
Dawbarn & Sons Limited is a private company limited by shares incorporated in England and Wales. The registered office is Harecroft Road, Wisbech, Cambridgeshire, PE13 1RL.
1.1
Reporting period
The financial statements are for the period 1st April 2022 to 29th September 2022 and are not entirely comparable to the prior year figures due to the shortening of the current period of accounts.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 14 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold property
10% straight line per annum of cost less estimated residual value
Plant and machinery
20% per annum reducing balance
Fixtures and fittings
20% per annum reducing balance
Motor vehicles
25% per annum reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 15 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 17 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2022
2022
£
£
Turnover analysed by class of business
Manufactured and fitted
2,651,568
4,805,131
Manufactured and supplied only
2,438,950
4,032,726
5,090,518
8,837,857
2022
2022
£
£
Turnover analysed by geographical market
United Kingdon
4,865,995
8,524,647
Europe
224,523
313,210
5,090,518
8,837,857
2022
2022
£
£
Other revenue
Grants received
-
25,263
4
Operating profit
2022
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Government grants
-
(25,263)
Fees payable to the company's auditor for the audit of the company's financial statements
16,000
Depreciation of owned tangible fixed assets
40,436
81,621
Depreciation of tangible fixed assets held under finance leases
-
14,033
(Profit)/loss on disposal of tangible fixed assets
(513,397)
19,607
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 19 -
5
Auditor's remuneration
2022
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
16,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2022
2022
Number
Number
82
75
Their aggregate remuneration comprised:
2022
2022
£
£
Wages and salaries
1,369,932
2,676,083
Social security costs
152,465
273,807
Pension costs
43,519
67,727
1,565,916
3,017,617
7
Directors' remuneration
2022
2022
£
£
Remuneration for qualifying services
196,700
518,800
As total directors' remuneration was less than £200,000 in the current period, no disclosure is provided for that period, for the highest paid director.
8
Interest payable and similar expenses
2022
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
32,304
17,988
Other finance costs:
Interest on finance leases and hire purchase contracts
1,496
1,258
Other interest
684
34,484
19,246
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 20 -
9
Taxation
2022
2022
£
£
Current tax
UK corporation tax on profits for the current period
138,071
43,077
Deferred tax
Origination and reversal of timing differences
(10,908)
1,430
Total tax charge
127,163
44,507
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2022
2022
£
£
Profit before taxation
806,057
324,152
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
153,151
61,589
Tax effect of expenses that are not deductible in determining taxable profit
984
32
Effect of change in corporation tax rate
13,585
Research and development tax credit
(13,597)
Other permanent differences
(17,483)
Deferred tax adjustments in respect of prior years
(22,751)
130% super-deduction capital allowance on qualifying plant and machinery
(323)
(3,517)
Taxation charge for the period
127,163
44,507
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 21 -
10
Tangible fixed assets
Freehold property
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
1,900,376
903,047
94,057
224,538
3,122,018
Additions
28,052
1,568
29,620
Disposals
(1,886,603)
(1,886,603)
At 29 September 2022
13,773
931,099
95,625
224,538
1,265,035
Depreciation and impairment
At 1 April 2022
11,018
690,451
72,812
117,279
891,560
Depreciation charged in the period
689
24,061
2,280
13,406
40,436
At 29 September 2022
11,707
714,512
75,092
130,685
931,996
Carrying amount
At 29 September 2022
2,066
216,587
20,533
93,853
333,039
At 31 March 2022
1,889,358
212,596
21,245
107,259
2,230,458
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2022
2022
£
£
Motor vehicles
42,102
11
Stocks
2022
2022
£
£
Raw materials and consumables
1,198,012
1,245,134
12
Debtors
2022
2022
Amounts falling due within one year:
£
£
Trade debtors
1,571,505
1,798,055
Amounts owed by group undertakings
2,400,000
Other debtors
541
1,784
Prepayments and accrued income
34,081
12,381
4,006,127
1,812,220
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 22 -
13
Cash and cash equivalents
Cash at bank and in hand at the year end was £304,243 (March 2022 - £424,121).
14
Creditors: amounts falling due within one year
2022
2022
Notes
£
£
Bank loans
16
92,563
Obligations under finance leases
17
13,445
Trade creditors
1,426,876
1,178,112
Corporation tax
181,148
43,077
Other taxation and social security
278,288
312,963
Other creditors
46,652
45,271
Accruals and deferred income
42,986
167,172
1,975,950
1,852,603
Bank loans are secured against the assets to which they relate to.
Hire purchase agreements are secured against the assets to which they relate to.
15
Creditors: amounts falling due after more than one year
2022
2022
Notes
£
£
Bank loans and overdrafts
16
658,173
Obligations under finance leases
17
3,573
661,746
Bank loans are secured against the assets to which they relate to.
Hire purchase agreements are secured against the assets to which they relate to.
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
287,921
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 23 -
16
Loans and overdrafts
2022
2022
£
£
Bank loans
750,736
Payable within one year
92,563
Payable after one year
658,173
The long-term The bank loan is secured by fixed and floating charges over the company’s assets.
17
Finance lease obligations
2022
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
13,445
In two to five years
3,573
17,018
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2022
Balances:
£
£
Accelerated capital allowances
56,606
67,513
2022
Movements in the period:
£
Liability at 1 April 2022
67,513
Credit to profit or loss
(10,907)
Liability at 29 September 2022
56,606
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 24 -
19
Retirement benefit schemes
2022
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
43,519
67,727
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Contributions totalling £7,093 (2022 - £3,143) were payable to the fund at the balance sheet date.
20
Share capital
2022
2022
2022
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
10,000
10,000
1,000
1,000
Ordinary A shares of £1 each
-
100
-
100
10,000
10,100
1,000
1,100
Shares rank pari passu for voting rights.
Shares to participate in a distribution when dividends are declared in respect of these shares.
Shares rank pari passu on the winding up of the company.
The company undertook a purchase of own shares in respect of the ordinary A shares totalling £100 for par value on 9 August 2022.
21
Profit and loss reserve
Represents all current and prior periods retained profits and losses, less dividends paid.
22
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2022
£
£
Within one year
268,500
Between two and five years
716,000
984,500
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 25 -
23
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2022
2022
£
£
Aggregate compensation
439,877
518,800
Transactions with related parties
During the period the company entered into the following transactions with Shur-Co UK Limited, a fellow subsidiary within the Shur-Co Group ;
Sales
Sales
Purchases
Purchases
2022
2022
2022
2022
£
£
£
£
Shur-Co UK Limited
35,775
31,307
The following amounts were outstanding at the reporting end date from parent company Shur-Co Holdings Limited:
2022
2022
Amounts due from related parties
£
£
Shur-Co Holdings Limited
2,400,000
-
24
Controlling party
From 30 September 2022, the company became a wholly owned subsidiary of Shur-Co Holdings Limited, a company registered in the United Kingdom, which is the parent undertaking of the smallest group to consolidate financial statements. Copies of consolidated financial statements can be obtained from Portland, 25 High Street, Crawley, West Sussex, United Kingdom, RH10 1BG.
The company’s ultimate parent company is Behrman Brothers VI LLC registered in the United States of America. There is no single ultimate controlling party.
DAWBARN & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 SEPTEMBER 2022
- 26 -
25
Cash absorbed by operations
2022
2022
£
£
Profit for the period after tax
678,894
279,645
Adjustments for:
Taxation charged
127,163
44,507
Finance costs
34,484
19,246
(Gain)/loss on disposal of tangible fixed assets
(513,397)
19,607
Depreciation and impairment of tangible fixed assets
40,436
95,654
Movements in working capital:
Decrease/(increase) in stocks
47,122
(362,986)
Increase in debtors
(2,193,907)
(498,050)
Increase/(decrease) in creditors
91,284
(17,279)
Cash absorbed by operations
(1,687,921)
(419,656)
26
Analysis of changes in net funds/(debt)
1 April 2022
Cash flows
29 September 2022
£
£
£
Cash at bank and in hand
424,121
(119,878)
304,243
Borrowings excluding overdrafts
(750,736)
750,736
-
Obligations under finance leases
(17,018)
17,018
-
(343,633)
647,876
304,243
2022-09-292022-04-01falseCCH SoftwareCCH Accounts Production 2023.200Mr H Harrington DeceasedMr B W HarringtonMrs J M HarringtonMr S TimmsMr PJ CranmerMr C HeminoverMr RA Standen011020272022-04-012022-09-2901102027bus:Director52022-04-012022-09-2901102027bus:Director62022-04-012022-09-2901102027bus:Director72022-04-012022-09-2901102027bus:Director12022-04-012022-09-2901102027bus:Director22022-04-012022-09-2901102027bus:Director32022-04-012022-09-2901102027bus:Director42022-04-012022-09-2901102027bus:RegisteredOffice2022-04-012022-09-29011020272022-09-29011020272021-04-012022-03-3101102027core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3101102027core:RetainedEarningsAccumulatedLosses2022-04-012022-09-29011020272022-03-3101102027core:LandBuildingscore:OwnedOrFreeholdAssets2022-09-2901102027core:PlantMachinery2022-09-2901102027core:FurnitureFittings2022-09-2901102027core:MotorVehicles2022-09-2901102027core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3101102027core:PlantMachinery2022-03-3101102027core:FurnitureFittings2022-03-3101102027core:MotorVehicles2022-03-3101102027core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-2901102027core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3101102027core:Non-currentFinancialInstrumentscore:AfterOneYear2022-09-2901102027core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3101102027core:CurrentFinancialInstruments2022-09-2901102027core:CurrentFinancialInstruments2022-03-3101102027core:Non-currentFinancialInstruments2022-09-2901102027core:Non-currentFinancialInstruments2022-03-3101102027core:ShareCapital2022-09-2901102027core:ShareCapital2022-03-3101102027core:RetainedEarningsAccumulatedLosses2022-09-2901102027core:RetainedEarningsAccumulatedLosses2022-03-3101102027core:ShareCapital2021-03-3101102027core:RetainedEarningsAccumulatedLosses2021-03-31011020272021-03-3101102027core:ShareCapitalOrdinaryShares2022-09-2901102027core:ShareCapitalOrdinaryShares2022-03-3101102027core:ShareCapital2022-04-012022-09-290110202712022-04-012022-09-290110202712021-04-012022-03-31011020272022-03-3101102027core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012022-09-2901102027core:PlantMachinery2022-04-012022-09-2901102027core:FurnitureFittings2022-04-012022-09-2901102027core:MotorVehicles2022-04-012022-09-2901102027core:UKTax2022-04-012022-09-2901102027core:UKTax2021-04-012022-03-310110202722022-04-012022-09-290110202722021-04-012022-03-3101102027core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3101102027core:PlantMachinery2022-03-3101102027core:FurnitureFittings2022-03-3101102027core:MotorVehicles2022-03-3101102027core:WithinOneYear2022-09-2901102027core:WithinOneYear2022-03-3101102027core:BetweenTwoFiveYears2022-09-2901102027core:BetweenTwoFiveYears2022-03-3101102027core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntitycore:SaleOrPurchaseGoods2022-04-012022-09-2901102027core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntitycore:SaleOrPurchaseGoods2021-04-012022-03-3101102027bus:PrivateLimitedCompanyLtd2022-04-012022-09-2901102027bus:FRS1022022-04-012022-09-2901102027bus:Audited2022-04-012022-09-2901102027bus:FullAccounts2022-04-012022-09-29xbrli:purexbrli:sharesiso4217:GBP