REGISTERED NUMBER: 05332710 (England and Wales) |
REPORT OF THE DIRECTORS AND |
UNAUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
DRE GROUP LIMITED |
REGISTERED NUMBER: 05332710 (England and Wales) |
REPORT OF THE DIRECTORS AND |
UNAUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
DRE GROUP LIMITED |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Consolidated Income Statement | 3 |
Consolidated Balance Sheet | 4 |
Company Balance Sheet | 6 |
Notes to the Consolidated Financial Statements | 8 |
DRE GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
The Counting House |
High Street |
Lutterworth |
Leicestershire |
LE17 4AY |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of Property development and investment and manufacturing. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 1,178,470 | 1,214,252 |
Cost of sales | 19,947 | 28,210 |
GROSS PROFIT | 1,158,523 | 1,186,042 |
Administrative expenses | 700,586 | 756,100 |
457,937 | 429,942 |
Other operating income | 40,245 | 24,129 |
Gain/loss on revaluation of assets | - | 439,971 |
OPERATING PROFIT | 5 | 498,182 | 894,042 |
Gain/loss on revaluation of assets | 293,520 | - |
791,702 | 894,042 |
Interest payable and similar expenses | 119,836 | 140,810 |
PROFIT BEFORE TAXATION | 671,866 | 753,232 |
Tax on profit | (17,204 | ) | 162,587 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 689,070 | 590,645 |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
CONSOLIDATED BALANCE SHEET |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 | 175,000 | 175,001 |
Tangible assets | 8 | 1,678,825 | 1,481,457 |
Investments | 9 |
Interest in joint venture |
Share of gross assets | 1,366,638 | 790,342 |
Share of gross liabilities | (1,292,182 | ) | (741,464 | ) |
74,456 | 48,878 |
Other investments | - | (1 | ) |
Investment property | 10 | 6,606,302 | 6,809,323 |
8,534,583 | 8,514,658 |
CURRENT ASSETS |
Debtors | 11 | 134,488 | 322,661 |
Cash at bank | 1,529,150 | 1,310,081 |
1,663,638 | 1,632,742 |
CREDITORS |
Amounts falling due within one year | 12 | 1,488,995 | 1,676,579 |
NET CURRENT ASSETS/(LIABILITIES) | 174,643 | (43,837 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | 8,709,226 | 8,470,821 |
CREDITORS |
Amounts falling due after more than one year | 13 | (1,573,946 | ) | (1,965,098 | ) |
PROVISIONS FOR LIABILITIES | 14 | (72,893 | ) | (132,406 | ) |
NET ASSETS | 7,062,387 | 6,373,317 |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
CONSOLIDATED BALANCE SHEET - continued |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 15 | 11,000 | 11,000 |
Share premium | 2,474,977 | 2,474,977 |
Other reserves | 1,823,542 | 1,530,022 |
Retained earnings | 2,752,868 | 2,357,318 |
SHAREHOLDERS' FUNDS | 7,062,387 | 6,373,317 |
The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2023. |
The members have not required the company and the group to obtain an audit of its financial statements for the year ended 31 January 2023 in accordance with Section 476 of the Companies Act 2006. |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the group keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company and the group as at the end of each financial year and of the group's profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company and the group. |
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime. |
The financial statements were approved by the Board of Directors and authorised for issue on 24 October 2023 and were signed on its behalf by: |
S J England - Director |
Mrs S Paice - Director |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
COMPANY BALANCE SHEET |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
Investments | 9 |
Investment property | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( | ) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Share premium |
Retained earnings | ( | ) | ( | ) |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,007 | 64,555 |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
COMPANY BALANCE SHEET - continued |
31 JANUARY 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
1. | STATUTORY INFORMATION |
DRE Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiaries, details of which are set out in the notes below.The company acted as a holding company for the group and did not trade in its own right. During the year ended 31 January 2015 the group lost effective control of the assets of one of its subsidiary companies, as a result of which the subsidiary in question, Croskeep Limited, has been excluded from the consolidation under the provisions of Financial Reporting Standard 2-Accounting for Subsidiary Undertakings and section 409 of the Companies Act 2006. |
Joint ventures |
Joint ventures are accounted for using the equity method, whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets. The investor's profit or loss includes its share of the investee's profit or loss and the investor's other comprehensive income includes its share of the investee's other comprehensive income. |
Critical accounting 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 values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant, Actual results may differ from these estimates. |
Turnover |
Revenue comprises the fair value of the consideration received or receivable for the rendering of services in the ordinary course of the company's activities. Revenue is shown net of VAT and trade discounts. |
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The company bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. |
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. |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Financial instruments |
Financial assets |
Receivables are stated at amortised cost using the effective interest rate method. A provision for impairment of receivables is established where there is objective evidence that the company will not be able to collect all amounts due according to the original terms of payment. Receivables are considered for impairment on a case by case basis and any provision is based on the directors' assessment of the amount recoverable on each receivable. |
Financial liabilities |
The company's financial liabilities include trade and other payables, which are measured at amortised cost using the effective interest rate method. Financial liabilities are recognised when the company becomes a party to the contractual agreements of the instrument. Interest-related charges are recognised as an expense in the period in which they are incurred. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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. |
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. |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
3. | ACCOUNTING POLICIES - continued |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
The financial statements are presented in GBP, being both the company's functional and presentation currency. Transactions denominated in foreign currencies are translated into GBP at the rates of exchange in operation on the dates of the transactions. Monetary assets and liabilities expressed in foreign currencies are translated into GBP at the rates of exchange prevailing at the date of the Statements of Financial Position. Translation differences are dealt with through the Statement of Comprehensive Income in the period in which they arise. |
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. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
4. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 30,007 | 26,311 |
6. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
7. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 February 2022 |
and 31 January 2023 | 175,000 |
NET BOOK VALUE |
At 31 January 2023 | 175,000 |
At 31 January 2022 | 175,000 |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
8. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 February 2022 | 1,360,000 | 449,836 | 437,834 |
Additions | - | - | 12,500 |
Revaluations | 180,111 | - | - |
At 31 January 2023 | 1,540,111 | 449,836 | 450,334 |
DEPRECIATION |
At 1 February 2022 | - | 447,963 | 338,952 |
Charge for year | - | - | 4,798 |
At 31 January 2023 | - | 447,963 | 343,750 |
NET BOOK VALUE |
At 31 January 2023 | 1,540,111 | 1,873 | 106,584 |
At 31 January 2022 | 1,360,000 | 1,873 | 98,882 |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 February 2022 | 226,442 | 29,563 | 2,503,675 |
Additions | 77,845 | - | 90,345 |
Revaluations | - | - | 180,111 |
At 31 January 2023 | 304,287 | 29,563 | 2,774,131 |
DEPRECIATION |
At 1 February 2022 | 251,062 | 27,322 | 1,065,299 |
Charge for year | 24,821 | 388 | 30,007 |
At 31 January 2023 | 275,883 | 27,710 | 1,095,306 |
NET BOOK VALUE |
At 31 January 2023 | 28,404 | 1,853 | 1,678,825 |
At 31 January 2022 | (24,620 | ) | 2,241 | 1,438,376 |
Cost or valuation at 31 January 2023 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2023 | 1,540,111 | 449,836 | 450,334 |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
8. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
Valuation in 2023 | 304,287 | 29,563 | 2,774,131 |
If Freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 1,310,000 | 1,310,000 |
Value of land in freehold land and buildings | 300,000 | 300,000 |
Freehold land and buildings were valued on an open market basis on 31 January 2023 by the directors . |
9. | FIXED ASSET INVESTMENTS |
The names, shareholdings and principle activities of the subsidiary companies are given below. |
All group companies are owned 100% except SSTL Investments Limited (50%) and the Registered Office is the same as the parent company. |
Highcross Commercial Investments Limited - 10,000 deferred shares of £1 each and 10,000 Ordinary shares of $1 each (Property investment and development). |
Burbage Cleaning Services Limited - 2 Ordinary shares of £1 each and 1 B Ordinary share of £1 (Cleaning services). |
DRE Property Services Limited - 2 Ordinary shares of £1 each (Property management services). |
Twycross Estates Limited -£1 Ordinary share of £1 (Property investment and development). |
SSTL Investments Limited - 100 Ordinary shares of £1 each (property investment and development). |
Cotswold Estates Limited - 500 shares of £1 each (property development and storage solutions) |
As set out in note 3 above, and as required under section 409 of the Companies Act 2006 and the provisions of Financial Reporting Standard 2 (Accounting for Subsidiary Undertakings), Croskeep Limited has been excluded from the group consolidation because of severe long-term restrictions which substantially prohibit the exercise of the rights of the parent company over the assets and management of the company. Its aggregate capital and reserves at 31 January 2022 was a deficit of £16,545,739 . The company did not trade during 2022 and was dissolved during the year ended 31 January 2023. There is no responsibility or call on any group company is respect of the liabilities of Croskeep Limited. |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
10. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 February 2022 | 6,842,893 |
Additions | 45,835 |
Disposals | (395,835 | ) |
Revaluations | 113,409 |
At 31 January 2023 | 6,606,302 |
NET BOOK VALUE |
At 31 January 2023 | 6,606,302 |
At 31 January 2022 | 6,842,893 |
Fair value at 31 January 2023 is represented by: |
£ |
Valuation in 2023 | 6,606,302 |
If investment property had not been revalued it would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 1,809,934 | 2,620,947 |
investment property was valued on an open market basis on 31 January 2023 by the directors . |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 42,358 | 34,394 |
Amounts owed by group undertakings | - | - |
Other debtors | 36,264 | 174,629 |
No description | - | - | 500,000 | - |
No description | - | - | 184,396 | - |
VAT | - | - |
Prepayments | 55,866 | 113,638 |
134,488 | 322,661 |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts | 180,432 | 139,255 |
Trade creditors | 275,118 | 294,917 |
Tax | 42,310 | 59,879 |
Social security and other taxes | 35,561 | 33,500 |
Other creditors | 510,005 | 608,785 |
Due to group companies | - | - | 1,671,402 | 1,671,402 |
Directors' current accounts | 77,912 | 98,311 | 77,912 | 98,311 |
Accrued expenses | 367,657 | 441,932 |
1,488,995 | 1,676,579 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans - 1-2 years | 10,000 | 10,000 |
Bank loans - 2-5 years | 36,000 | 35,000 |
Bank loans more 5 yr by instal | 1,527,946 | 1,920,098 |
1,573,946 | 1,965,098 |
Amounts falling due in more than five years: |
Group |
2023 | 2022 |
£ | £ |
Repayable by instalments |
Bank loans more 5 yr by instal | 1,527,946 | 1,920,098 |
14. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 72,893 | 132,406 |
Group |
Deferred |
tax |
£ |
Balance at 1 February 2022 | 132,406 |
Credit to Income Statement during year | (59,513 | ) |
Balance at 31 January 2023 | 72,893 |
DRE GROUP LIMITED (REGISTERED NUMBER: 05332710) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
15. | CALLED UP SHARE CAPITAL |
The company's authorised, allotted, issued and fully paid share capital at 31 January 2021 and 31 January 2020 consisted of 10,000 'A' Ordinary shares of £1 each and 10,000 'B' Ordinary shares of 10 pence each, |
The 'A' Ordinary shares carry full voting rights, rights to dividends and rights to participate in the proceeds of any distribution on winding up. |
The 'B' Ordinary shares carry no voting rights and no dividend rights. On a return of capital, the assets of the company are distributable in the following order of priority: |
First in paying to each of 'A' Ordinary and 'B' ordinary shareholders an amount equal to the price paid of such shown on a par passu basis; |
Second, in paying to the 'A' ordinary shareholder an aggregate of £1.5 million; |
Third, in paying any balance remaining after application of the above to the 'B' shareholders. |
16. | RELATED PARTY DISCLOSURES |
At £1 January 2023, an amount of £77,912 (2022 £98,311) was due to the director Mr D R England. |
The group undertook the following transactions with related parties: |
Rent paid to the DRE Group Pension Scheme - £Nil (2022 £8,250). |
Fees collected from the DRE Group Pension Scheme - £1,000 (2022 £1,000). |
Rent paid to the director Mr D R England - £44,000 (2022 £44,000). |
17. | ULTIMATE CONTROLLING PARTY |
The controlling party is D R England. |
The ultimate controlling party is D R England. |