Company Registration No. 05305220 (England and Wales)
DTW ASSOCIATES LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
DTW ASSOCIATES LIMITED
COMPANY INFORMATION
Directors
K A Baldwin
S M Scoggins
Secretary
Mr G T J Madson
Company number
05305220
Registered office
Ashford House
41-45 Church Road
Ashford
Middlesex
TW15 2TQ
Accountants
Stiles Accountants Limited, Statutory Auditor
2 Lake End Court
Taplow Road
Taplow
Maidenhead
Berkshire
SL6 0JQ
DTW ASSOCIATES LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Balance sheet
3 - 4
Notes to the financial statements
5 - 12
DTW ASSOCIATES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of the provision of log book loans, pawnbroking services and bureau de change.
Business review
During the year, t
he company’s ultimate parent undertaking, Creditcorp Inc, decided to re-focus on their US business activities and therefore wind down their overseas company DTW Associates Limited by the end of 2022. This has resulted in the financial statements being prepared on a
basis other than going concern
. As a result, assets were written down to their net recoverable amount
within the
31 December 2020
and 2021 financial statements
. The company will continue to trade as normal during the wind down period. The directors have made appropriate provisions in order to bring about the orderly and solvent wind-down of the company and its operations.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
K A Baldwin
S M Scoggins
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
K A Baldwin
Director
27 September 2022
DTW ASSOCIATES LIMITED
REPORT TO THE DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY ACCOUNTS OF DTW ASSOCIATES LIMITED
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of DTW Associates Limited for the year ended 31 December 2021 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at https://www.accaglobal.com/gb/en/member/standards/rules-and-standards/rulebook.html.
This report is made solely to the Board of Directors of DTW Associates Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of DTW Associates Limited and state those matters that we have agreed to state to the Board of Directors of DTW Associates Limited, as a body, in this report in accordance with
the requirements of the Association of Chartered Certified Accountants
as detailed at
https://www.accaglobal.com/content/dam/ACCA_Global/Technical/fact/technical-factsheet-163.pdf. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than DTW Associates Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that DTW Associates Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and loss
of DTW Associates Limited. You consider that DTW Associates Limited is exempt from the statutory audit
requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of DTW Associates Limited. For this reason, we have not verified the accuracy or completeness of the
accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Stiles Accountants Limited, Statutory Auditor
Chartered Certified Accountants
2 Lake End Court
Taplow Road
Taplow
Maidenhead
SL6 0JQ
DTW ASSOCIATES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 3 -
2021
2020
Notes
£
£
£
£
Fixed assets
Intangible assets
3
4,598
17,170
Tangible assets
4
5,492
18,387
Investments
5
1
1
10,091
35,558
Current assets
Stocks
119,326
119,140
Debtors
6
716,891
1,556,247
Cash at bank and in hand
1,244,593
589,892
2,080,810
2,265,279
Creditors: amounts falling due within one year
7
(1,005,443)
(316,310)
Net current assets
1,075,367
1,948,969
Total assets less current liabilities
1,085,458
1,984,527
Creditors: amounts falling due after more than one year
8
(772,285)
Provisions for liabilities
9
(603,430)
(633,210)
Net assets
482,028
579,032
Capital and reserves
Called up share capital
10
4,001,002
4,001,002
Profit and loss reserves
(3,518,974)
(3,421,970)
Total equity
482,028
579,032
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
DTW ASSOCIATES LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2021
31 December 2021
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 27 September 2022 and are signed on its behalf by:
K A Baldwin
Director
Company Registration No. 05305220
DTW ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
1
Accounting policies
Company information
DTW Associates Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Ashford House, 41-45 Church Road, Ashford, Middlesex, TW15 2TQ.
1.1
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
During the year, t
he company’s ultimate parent undertaking, Creditcorp Inc decided to refocus on the core US business and therefore cease operations of the company during 2022.
The financial statements have
therefore
been prepared on a basis other than going concern.
The preparation of financial statements on a
basis other than going concern
has been
made in order to comply with the overriding requirement for the statements to give a true and fair view.
T
he carrying value of the assets
have been impaired
to the amounts they are expected to realise and liabilities include any amounts which have crystallised as a result of the decision to wind up the company. In all other respects the financial statements have been prepared in accordance with FRS 102.
The directors have made appropriate provisions in order to bring about the orderly and solvent wind-down of the company and its operations whilst continuing to trade up to the expected closure date.
1.3
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
discounts and rebates
.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, 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.
Interest receivable in respect of loans, buybacks and pawnbroking transactions are recognised on an accruals basis.
DTW ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 6 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
The directors have made the decision to fully impair the remainder of the goodwill
within the prior year.
1.5
Intangible fixed assets other than goodwill
Intangible assets are
initially
recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Internally generated intangible assets are only capitalised when the cost can be measured accurately and it is probable that future economic benefits will attributable to the asset will flow to the entity.
Amortisation 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:
Software
4 years straight line
1.6
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.
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:
Leasehold improvements
10% on cost
Fixtures and fittings
25% on cost
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
.
1.7
Fixed asset investments
Interests in subsidiaries
are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
DTW ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 7 -
1.8
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible 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.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost
includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. A provision is made for damaged, obsolete and low-moving stock where appropriate.
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.
1.10
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.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
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.
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.
DTW ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 8 -
Basic financial liabilities
Basic financial liabilities, including
creditors and
loans from
fellow group companies 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
paymen
ts 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. A
m
ounts 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.
1.12
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.
1.13
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.
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.
1.14
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in
profit
or
loss
in the period
in which
it arises.
DTW ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 9 -
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.18
Government grants
Government grants are recognised at the fair value of the asset receive
d
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.
1.19
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
34
37
DTW ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
3
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2021
537,045
234,199
771,244
Disposals
(517,543)
(517,543)
At 31 December 2021
19,502
234,199
253,701
Amortisation and impairment
At 1 January 2021
537,045
217,029
754,074
Amortisation charged for the year
12,572
12,572
Eliminated on revaluation
(517,543)
(517,543)
At 31 December 2021
19,502
229,601
249,103
Carrying amount
At 31 December 2021
4,598
4,598
At 31 December 2020
17,170
17,170
4
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2021
107,410
415,335
522,745
Additions
202
202
Disposals
(11,045)
(80,637)
(91,682)
At 31 December 2021
96,365
334,900
431,265
Depreciation and impairment
At 1 January 2021
100,015
404,343
504,358
Depreciation charged in the year
4,930
8,167
13,097
Eliminated in respect of disposals
(11,045)
(80,637)
(91,682)
At 31 December 2021
93,900
331,873
425,773
Carrying amount
At 31 December 2021
2,465
3,027
5,492
At 31 December 2020
7,395
10,992
18,387
DTW ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
5
Fixed asset investments
2021
2020
£
£
Shares in group undertakings and participating interests
1
1
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
4,391
Other debtors
716,891
1,551,856
716,891
1,556,247
Included within other debtors are amounts totalling £nil (2020: £725,544) which are due in more than one year.
7
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
70
Other borrowings
772,285
475
Trade creditors
22,466
69,124
Taxation and social security
29,652
49,631
Other creditors
39,883
63,929
Accruals and deferred income
141,087
133,151
1,005,443
316,310
The other borrowings of £772,825 are in respect of the loans due to the parent company as further disclosed in notes 1.2 and 12.
8
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other creditors
772,285
DTW ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
8
Creditors: amounts falling due after more than one year
(Continued)
- 12 -
The amounts above represent a revolving credit facility with the immediate parent company which was due for repayment on 30 June 2021. The loan attracted interest at 15% per annum.
As detailed in note 1.2, the company is in the process of being wound up and therefore the loan will be repaid during 2022 once all other debts have been settled in full. Although the loan was due for repayment during the year, the directors of the company and its immediate parent wish to wind up the company on a solvent basis with remaining funds utilised to repay the loan as far as possible.
9
Provisions for liabilities
2021
2020
£
£
Wind-down provision
603,430
633,210
Movements on provisions:
Wind-down provision
£
At 1 January 2021
633,210
Reversal of provision
(29,780)
At 31 December 2021
603,430
The directors have recorded an estimate of the costs associated with the orderly wind-down of the operation.
10
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
4,001,000
4,001,000
4,001,000
4,001,000
Ordinary B shares of £1 each
2
2
2
2
4,001,002
4,001,002
4,001,002
4,001,002
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
105,007
203,187
2021-12-31
2021-01-01
false
27 September 2022
CCH Software
CCH Accounts Production 2022.200
No description of principal activity
K A Baldwin
S M Scoggins
Mr G T J Madson
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