REGISTERED NUMBER:
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Diono UK Limited |
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Financial Statements |
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for the Year Ended 31 December 2019 |
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REGISTERED NUMBER:
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Diono UK Limited |
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Financial Statements |
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for the Year Ended 31 December 2019 |
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Diono UK Limited (Registered number: 04252542) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2019 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Diono UK Limited |
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Company Information |
for the Year Ended 31 December 2019 |
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DIRECTOR: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants and Statutory Auditors |
Sterling House |
97 Lichfield Street |
Tamworth |
Staffordshire |
B79 7QF |
Diono UK Limited (Registered number: 04252542) |
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Balance Sheet |
31 December 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Stocks |
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Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
8 |
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NET LIABILITIES | ( |
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CAPITAL AND RESERVES |
Called up share capital | 10 |
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Retained earnings | ( |
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SHAREHOLDERS' FUNDS | ( |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the director and authorised for issue on
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Diono UK Limited (Registered number: 04252542) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2019 |
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1. | STATUTORY INFORMATION |
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Diono UK Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Going concern |
The financial statements have been prepared on a going concern basis which assumes that the company will continue to operate for the foreseeable future. Additionally not all events or conditions can be predicted with the event of COVID 19 pandemic, which has brought with it additional unprecedented levels of uncertainty and the inability to assess fully, therefore, the impact of that on not only the company but also on the customers and suppliers it trades with. Budgets and cash flow projections compiled indicate that the company has sufficient reserves to continue to trade. The directors believe that support afforded, careful cashflow considerations and use of mitigating actions available, including furloughing of underutilised staff, is sufficient upon which to adopt the going concern basis. |
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Furthermore, the business responded to the Covid crisis with a digital first focus & this included appointing new digital agencies who specialise in digital platforms, not least Amazon. The global business has grown its worldwide Amazon levels of activity , achieved record matching revenue in Canada and has launched a new, mobile first, website. This includes the UK website which went live earlier this month. The Diono brand is digital first and maintains its Global ambition; the UK is essential to this strategy. |
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Diono UK remains a wholly owned subsidiary of a US company Diono Investments LLC which is majority owned by Winona Capital Partners II. |
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During 2018 the UK business underwent a full restructuring process. Three UK offices were closed and consolidated into a single office located in central Manchester. The new office brought together the functions of product design, engineering and administrative support. Warehousing was also relocated to a 3PL warehouse service who now manage all inventory and logistics for both the UK and European operations. |
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Following the restructuring, Diono UK Ltd continues to perform two distinct services for the wider group: |
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- Firstly, Diono UK Ltd has group responsibility for all product design, product engineering, product development, brand management and marketing services for all international markets with particular emphasis on the USA, Canada, and the UK. A service agreement for these activities was entered into between Diono UK Ltd and Diono LLC in 2018. |
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- Secondly Diono UK Ltd manages sales and sales support, operations and finance for the UK, German and French companies. This includes supplying inventory from the Manchester based 3PL warehouse. |
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As part of the group restructuring activity, new suppliers for the key performing products were signed. These new arrangements have now provided a reliable and scalable supply base. The business continues to review its cost base and some reductions in headcount were made in both the UK and overseas businesses, making the cost more relative to revenue and also providing funding from previous expenditure levels that are being used to fund investment in the digital agencies. The early benefits of these changes can be seen in the 2019 financial statements. |
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Diono UK Ltd continues to be supported in full by Diono LLC and management remain confident that the benefits of the restructuring activity will benefit future years. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Diono UK Limited (Registered number: 04252542) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Goodwill |
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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 impairment losses. |
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Tangible fixed assets |
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Plant and machinery etc | - |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, 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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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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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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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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Diono UK Limited (Registered number: 04252542) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
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4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
Goodwill | assets | Totals |
£ | £ | £ |
COST |
At 1 January 2019 |
and 31 December 2019 |
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AMORTISATION |
At 1 January 2019 |
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Charge for year |
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At 31 December 2019 |
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NET BOOK VALUE |
At 31 December 2019 |
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At 31 December 2018 |
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5. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1 January 2019 |
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Additions |
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At 31 December 2019 |
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DEPRECIATION |
At 1 January 2019 |
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Charge for year |
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At 31 December 2019 |
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NET BOOK VALUE |
At 31 December 2019 |
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At 31 December 2018 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
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Amounts owed by associates |
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Other debtors |
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Diono UK Limited (Registered number: 04252542) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2019 |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts |
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Trade creditors |
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Amounts owed to associates | 1,127,520 | 987,465 |
Taxation and social security |
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Other creditors |
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8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2019 | 2018 |
£ | £ |
Amounts owed to group undertakings |
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9. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2019 | 2018 |
£ | £ |
Within one year |
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Between one and five years |
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10. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2019 | 2018 |
value: | £ | £ |
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Ordinary | 1 | 100 | 100 |
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11. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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We draw attention to the going concern section of note 2 in the financial statements, which details the changes the Company has implemented. The Company has experienced trading and operational difficulties in prior financial years and the management have made steps to address these issues. However, a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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Additionally, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed in the notes to the financial statements. |
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Our opinion is not modified in respect of this matter and the Report of the Auditors was unqualified. |
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for and on behalf of
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12. | ULTIMATE CONTROLLING PARTY |
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The company is a wholly owned subsidiary of Diono LLC, a company incorporated in the United States of America. Group financial statements are prepared by the parent company. |