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REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2018 |
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FOR |
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DESIGN GO LIMITED |
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REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 MARCH 2018 |
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FOR |
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DESIGN GO LIMITED |
DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2018 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 5 |
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Income Statement | 7 |
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Balance Sheet | 8 |
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Statement of Changes in Equity | 9 |
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Notes to the Financial Statements | 10 |
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DESIGN GO LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2018 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditor |
1 Waterside |
Station Road |
Harpenden |
Hertfordshire |
AL5 4US |
DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2018 |
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The directors present their strategic report for the year ended 31 March 2018. |
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REVIEW OF BUSINESS |
The principal activities of the company are the design, manufacture and distribution of travel accessories and related |
products. These products are sold globally with particular emphasis on the duty free and travel retail sectors. The |
majority of products sold are protected by intellectual property rights owned by the group. |
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Review of business |
The company aims to present a balanced and comprehensive review of the development and performance of its |
business during the year and its position at the year end. The company considers its key financial performance |
indicators are those that communicate the financial performance and strength of the company as a whole, these being |
turnover, gross profit and operating profit. |
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2018 | 2017 |
Turnover | 32,671,058 | 28,597,226 |
Gross Profit | 9,832,339 | 8,276,807 |
Operating Profit | 850,994 | 1,548,219 |
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The directors are satisfied with the 2018 results and continue to focus on maintaining and improving profitability for 2019 |
and beyond. |
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The company makes a significant investment in new product design and development in order to ensure the continued |
growth and success of the Go Travel brand. The supply chain is constantly reviewed with particular emphasis on |
fulfilment, quality and price. Further improvements will be made to the supply chain during 2019 so as to ensure the |
company remains competitive. |
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The global market for travel goods and accessories remains strong. Go Travel is an established and highly respected |
brand with a loyal customer base. The company plans to continue its global expansion through organic growth and |
strategic alliances with other leading brands in the sector. |
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Employees |
Health and safety |
The company has a comprehensive Health and Safety policy, including internal policy manuals and guidance for all |
employees. |
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Training and development |
The company runs in-house induction and training programmes for new employees. |
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DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2018 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
Principal risks and uncertainties |
The principal risks facing the company are broadly categorised as competitive and financial risks. |
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Competitive risks |
The company operates in competitive markets in the UK and worldwide. The company aims to mitigate these risks |
through a culture of constant innovation and improvement. Particular importance is given to the design, manufacture |
and launch of innovative new products. The company also exhibits its products annually at a number of international |
trade shows which cater principally for the duty free and travel retail sectors. These shows include the International |
Travel Goods Show in the USA, the TFWA Shows in France and Singapore and the Messe Offenbach Fair in Germany. |
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Financial risks |
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Credit risk |
Credit risk is the risk of financial loss to the company if a customer fails to meets is contractual obligations and arises |
principally from its trade debtors. |
There is no material concentration of credit risk with any single customer. The company has a credit policy under which |
new customers are assessed for creditworthiness before credit terms are offered. Larger customers are monitored on a |
daily basis and accounts are placed on supply hold when appropriate. Sales are made on a pro forma basis in |
circumstances where there is any doubt about the creditworthiness of a customer. |
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Foreign exchange risk |
The company is exposed to currency risk on purchases and trade debtors that are denominated in a currency other than |
sterling. |
The majority of the purchases made by the company are denominated in US Dollars. The company is therefore subject |
to exchange risk from the movement in the GBP/USD exchange rate. A significant proportion of the sales of the |
company are denominated in US Dollars and the company therefore benefits from a natural hedge against movements |
in the GBP/USD exchange rate. Where appropriate the company also mitigates foreign exchange risk through the use |
of financial instruments such as forward exchange contracts. |
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Brexit risk |
Following the UK's decision to leave the EU in 2016, the directors have considered the possible adverse impact that |
decision may have on the company in the longer term. In particular the directors have considered the impact that a 'hard |
Brexit' may have on the company. |
The principal operational risk of a 'hard Brexit' are the potentially severe delays at the borders when transporting goods |
between the UK and the EU. In order to mitigate this risk and protect the continuity of supply to customers based within |
the EU, during 2017 and 2018 European distribution was steadily migrated away from the UK into the EU. By 31 |
October 2018 many of the key EU customers were being serviced from within the EU. The remaining EU customers will |
be migrated away from the UK before 29 March 2019, ensuring continuity of supply within the EU in the event of a 'hard |
Brexit'. |
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ON BEHALF OF THE BOARD: |
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DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2018 |
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The directors present their report with the financial statements of the company for the year ended 31 March 2018. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the sale of travel goods. |
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DIVIDENDS |
No interim dividend was paid during the year. The directors recommend a final dividend of £ |
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The total distribution of dividends for the year ended 31 March 2018 will be £
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FUTURE DEVELOPMENTS |
The directors are satisfied with the 2018 results and continue to focus on maintaining and improving profitability for 2019 |
and beyond. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2017 to the date of this report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements |
in accordance with applicable law and regulations. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company
will continue in business. |
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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. |
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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 ought to have |
taken as a director in order to make himself aware of any relevant audit information and to establish that the company's |
auditors are aware of that information. |
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AUDITORS |
The auditors, LBCA Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DESIGN GO LIMITED |
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Opinion |
We have audited the financial statements of Design Go Limited (the 'company') for the year ended 31 March 2018 which |
comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and |
Notes to the Financial Statements, including a summary of 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). |
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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. |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 March 2018 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. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on 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 UK, including the FRC's 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 opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to |
you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may cast
significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic |
Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors |
thereon. |
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Our opinion on the financial statements does not cover the other information and we do not express any form of |
assurance conclusion thereon. |
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In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. 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. |
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Opinion on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which the
financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal
requirements. |
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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 Strategic Report or the Report of the Directors. |
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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: |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
DESIGN GO LIMITED |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from |
material misstatement, whether due to fraud or error. |
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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. |
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Our 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 a Report of the Auditors 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. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting |
Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
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for and on behalf of
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Statutory Auditor |
1 Waterside |
Station Road |
Harpenden |
Hertfordshire |
AL5 4US |
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DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
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TURNOVER | 4 |
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Cost of sales |
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GROSS PROFIT |
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Distribution costs |
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Administrative expenses |
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8,981,345 | 6,728,588 |
OPERATING PROFIT | 6 |
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Interest receivable and similar income |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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PROFIT FOR THE FINANCIAL YEAR |
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DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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BALANCE SHEET |
31 MARCH 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
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Tangible assets | 10 |
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CURRENT ASSETS |
Stocks | 11 |
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Debtors | 12 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 17 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 18 |
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Retained earnings | 19 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
by: |
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DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2018 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 April 2016 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 March 2017 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 March 2018 |
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DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2018 |
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1. | STATUTORY INFORMATION |
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Design Go Limited is a
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registered number and registered office address can be found on the Company Information page. |
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial |
statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of |
Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
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The company is a qualifying subsidiary. The parent company is DG International Holdings Limited, consolidated |
accounts can be obtained from the company's registered office. |
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Significant judgements and estimates |
The company is required to make various judgements, assumptions and estimates on the reported income |
statement and balance sheet data. For example, depreciation timing, and impairment. The carrying value of |
tangible assets are calculated on the basis of estimates of depreciation periods derived from the expected useful |
life of the asset concerned, and residual values. The expected useful life of the assets and their estimated |
residual value may change, which may give rise to the need to recognise an impairment on assets. |
Where there are indicators of impairment of individual assets, the company performs impairment tests. If the |
recoverable amount of the asset is estimated to be less than its carrying amount it reduces its recoverable |
amount. The difference between the carrying amount and the recoverable amount is recognised as an |
impairment loss in profit or loss. |
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Income |
Income is recognised when goods have been delivered to customers such that risks and rewards of ownership |
have transferred to them. |
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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 impairments losses. |
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Intangible fixed assets shown under the heading Patents & Licences are being amortised on a straight line basis |
over a period of 10 years. |
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Intangible fixed assets shown under the heading Computer Software are being amortised on a straight line basis |
over a period of 3 years. |
DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2018 |
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3. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Long leasehold | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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Computer equipment | - |
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Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment |
losses. |
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The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and |
installation. |
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Stocks |
Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to complete |
and sell, after making due allowance for obsolete and slow moving items. |
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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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
balance sheet date. |
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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. |
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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. |
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Foreign currencies |
Transactions in foreign currencies are recognised at the average rate. At the end of the reporting period, |
monetary items denominated in foreign currencies are retranslated at the rate prevailing at that date. Exchange |
differences are recognised in profit or loss in the period in which they arise. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension |
scheme are charged to profit or loss in the period to which they relate. |
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Financial instruments |
Basic financial instruments are recognised at amortised cost, with changes recognised in profit or loss. |
Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised |
in profit or loss. |
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Financial instruments are recognised when the company becomes party to the contractual provisions of the |
instrument and derecognised when, in the case of assets, the contractual rights to cash flows from the assets |
expire or substantially all the risks and rewards of ownership are transferred to another party and in the case of |
liabilities, when the company's obligations are discharged, expire or are cancelled. |
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Employee benefits |
Employee benefits are recognised as an expense in the period in which they are incurred. |
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Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for |
the estimated liability for annual leave as a result of services rendered by employees up to the balance sheet |
date. |
DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2018 |
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4. | TURNOVER |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by geographical market is given below: |
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2018 | 2017 |
£ | £ |
UK | 11,080,344 | 10,914,885 |
Europe | 11,011,300 | 10,386,380 |
USA | 6,165,404 | 2,800,552 |
Asia | 1,865,058 | 1,956,257 |
Australia | 1,740,024 | 1,994,687 |
Africa | 808,928 | 544,465 |
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The company's turnover represents the value, excluding value added tax, of goods supplied to customers during |
the year. |
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5. | EMPLOYEES AND DIRECTORS |
2018 | 2017 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2018 | 2017 |
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Office and management | 29 | 29 |
Sales and production | 61 | 64 |
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2018 | 2017 |
£ | £ |
Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
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Information regarding the highest paid director is as follows: |
2018 | 2017 |
£ | £ |
Emoluments etc |
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Pension contributions to money purchase schemes |
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DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2018 |
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6. | OPERATING PROFIT |
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The operating profit is stated after charging/(crediting): |
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2018 | 2017 |
£ | £ |
Depreciation - owned assets |
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Loss on disposal of fixed assets |
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Patents and licences amortisation |
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Computer software amortisation |
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Auditors' remuneration |
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Foreign exchange differences |
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( |
) |
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The company rents two properties from D G Capital Limited, a member of the same group, for an annual rent of |
£295,000 (2017: £295,000). |
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Included within foreign exchange differences are amounts relating to changes in fair value of financial derivatives |
£140,179 (2017: £79,728). |
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7. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2018 | 2017 |
£ | £ |
Current tax: |
UK corporation tax |
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Deferred tax: |
Deferred tax timing difference |
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Deferred tax rate difference | (4,029 | ) | (4,748 | ) |
Total deferred tax |
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Tax on profit |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is |
explained below: |
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2018 | 2017 |
£ | £ |
Profit before tax |
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Profit multiplied by the standard rate of corporation tax in the UK of
(2017 - |
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Effects of: |
Expenses not deductible for tax purposes |
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Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) | ( |
) |
Deferred tax timing difference |
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Deferred tax rate difference | ( |
) | ( |
) |
Total tax charge | 150,214 | 307,315 |
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Following Budget 2015, the government announced legislation setting the Corporation Tax main rate at 19% for |
the years starting the 1 April 2017, 2018 and 2019 and at 18% for the year starting 1 April 2020. Following |
Budget 2016, the government announced a further reduction to the Corporation Tax main rate for the year |
starting 1 April 2020, setting the rate at 17%. |
DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2018 |
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8. | DIVIDENDS |
2018 | 2017 |
£ | £ |
Ordinary shares of £1 each |
Final |
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9. | INTANGIBLE FIXED ASSETS |
Patents |
and | Computer |
licences | software | Totals |
£ | £ | £ |
COST |
At 1 April 2017 |
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Additions |
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At 31 March 2018 |
|
|
|
AMORTISATION |
At 1 April 2017 |
|
|
|
Amortisation for year |
|
|
|
At 31 March 2018 |
|
|
|
NET BOOK VALUE |
At 31 March 2018 |
|
|
|
At 31 March 2017 |
|
|
|
|
Amortisation of intangible fixed assets is included in administrative expenses. |
|
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Long | Plant and | and |
leasehold | machinery | fittings |
£ | £ | £ |
COST |
At 1 April 2017 |
|
|
|
Additions |
|
|
|
At 31 March 2018 |
|
|
|
DEPRECIATION |
At 1 April 2017 |
|
|
|
Charge for year |
|
|
|
At 31 March 2018 |
|
|
|
NET BOOK VALUE |
At 31 March 2018 |
|
|
|
At 31 March 2017 |
|
|
|
DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2018 |
|
10. | TANGIBLE FIXED ASSETS - continued |
|
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2017 |
|
|
|
Additions |
|
|
|
At 31 March 2018 |
|
|
|
DEPRECIATION |
At 1 April 2017 |
|
|
|
Charge for year |
|
|
|
At 31 March 2018 |
|
|
|
NET BOOK VALUE |
At 31 March 2018 |
|
|
|
At 31 March 2017 |
|
|
|
|
11. | STOCKS |
2018 | 2017 |
£ | £ |
Stocks |
|
|
|
Stock recognised in cost of sales during the year as an expense was £24,747,585 (2017: £17,675,252). |
|
12. | DEBTORS |
2018 | 2017 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
|
|
Other debtors |
|
|
Related company - fellow sub | 36,654 | 44,021 |
Related company - fellow sub | 74,913 | 1,147 |
Related company - fellow sub | 2,640,840 | 2,051,970 |
Corporation tax |
|
|
Prepayments and accrued income |
|
|
|
|
|
Amounts falling due after more than one year: |
Other debtors |
|
|
|
Aggregate amounts |
|
|
DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2018 |
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade creditors |
|
|
Corporation tax |
|
|
Social security and other taxes |
|
|
VAT | 203,547 | 72,530 |
Other creditors |
|
|
Related company- parent | 10,707,794 | 10,293,031 |
Related company - fellow sub | 990,127 | 298,392 |
Related company - fellow sub | 1,695,547 | 1,095,665 |
Related company - fellow sub | 262,392 | 6,405 |
Accrued expenses |
|
|
|
|
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2018 | 2017 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
In addition, the company rents two properties from D G Capital Limited, a member of the same group, for an |
annual rent of £295,000 (2017: £295,000). |
|
15. | SECURED DEBTS |
|
The company acts as a security party for the bank on behalf of D G Capital Ltd, a company held within the same |
group. The bank loan of £562,500 (2017: £750,000) is in the name of D G Capital Ltd with a term 10 years from |
31 March 2011. The bank loan is interest only, at a rate of LIBOR with a 1% margin. |
|
The bank loan is guaranteed by a legal charge dated 31 March 2011 over the building at Mill Hill Industrial |
Estate and the warehouse in Hemel Hempstead, which are included within the groups accounts headed by DG |
International Holdings Ltd. |
|
With regard to this loan the bank hold an Unlimited Guarantee from Design Go Ltd. |
|
The bank facilities are secured by a cross guarantee & debenture between Design Go Limited, D G International |
Holdings Limited, D G Capital Limited, Go International Ltd, TPC International Limited & Wedgewood Properties |
Limited. |
|
The bank hold a deferment bond to H M Customs & Excise of £92,500 and a derivatives facility of £1,500,000. |
|
16. | FINANCIAL INSTRUMENTS |
|
Foreign exchange risk |
The group is exposed to currency risk on purchases and trade debtors that are denominated in a currency other |
than sterling. The majority of the purchases made by the group are denominated in US Dollars. The group is |
therefore subject to exchange risk from the movement in the GBP/USD exchange rate. A significant proportion of |
the sales of the group are denominated in US Dollars and the group therefore benefits from a natural hedge |
against movements in the GBP/USD exchange rate. Where appropriate the group also mitigates foreign |
exchange risk through the use of financial instruments such as forward exchange contracts. |
|
Financial assets and liabilities measured at fair value: |
|
Forward currency forward contracts have been fair valued using forward exchange rates with gains or losses |
being reported in profit or loss. Within other creditors year ended 31 March 2018 is a balance of £219,907 (2017: |
£79,728) relating to forward currency contracts. |
|
Financial assets measured at amortised cost £14,931,690 (2017: £15,392,646) |
Financial liabilities measured at amortised cost £15,959,178 (2017: £14,014.526) |
Financial liabilities measured at fair value cost £219,907 (2017: £79,728) |
DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2018 |
|
17. | PROVISIONS FOR LIABILITIES |
2018 | 2017 |
£ | £ |
Deferred tax | 34,249 | 26,906 |
|
Deferred |
tax |
£ |
Balance at 1 April 2017 |
|
Differences between capital | 7,343 |
allowances and depreciation |
Balance at 31 March 2018 |
|
|
The amount of the net reversal of deferred tax expected to occur next year is £17,053 (2017: £13,891) relating to |
the reversal of existing timing differences on tangible fixed assets. |
|
The balance brought forward, together with the movement for the year, relates to the differences between capital |
allowances and depreciation. |
|
18. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
|
Ordinary | £1 | 10,000 | 10,000 |
|
Each share has equal voting and distribution rights. |
|
19. | RESERVES |
Retained |
earnings |
£ |
|
At 1 April 2017 |
|
Profit for the year |
|
Dividends | ( |
) |
At 31 March 2018 |
|
|
Called up share capital - represents the nominal value of shares that have been issued. |
|
Profit and loss account - includes all current and prior period retained profits and losses. |
|
20. | PENSION COMMITMENTS |
|
Pension contributions are made under a defined contribution scheme. The assets of the scheme are held |
separately from those of the company in an independently administered fund. The pension costs charge |
represents contributions payable by the company and amounted to £116,037 (2017: £103,382). Contributions |
totalling £15,107 (2017: £14,385) were payable at the year end and are included within creditors. |
|
21. | ULTIMATE PARENT COMPANY |
|
The ultimate parent company is DG International Holdings Limited a company incorporated in England & Wales, |
in which the results of the company are consolidated. The consolidated accounts can be obtained from the |
company's registered office. |
|
22. | OTHER FINANCIAL COMMITMENTS |
|
The company entered into several forward exchange contracts, during the year totalling €2 million (2017: €7.5 |
million) which have a deal date after the year end. |
DESIGN GO LIMITED (REGISTERED NUMBER: 01477762) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2018 |
|
23. | RELATED PARTY DISCLOSURES |
|
Within creditors is an amount of £27,000 (2017: £27,000) owed to a fellow subsidiary, not wholly owned. |
|
24. | ULTIMATE CONTROLLING PARTY |
|
By virtue of a controlling interest in DG International Holdings Ltd, Mr J Rogers is the ultimate controlling party. |